.1. On 31 December of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of RM97,250; Allowance for Doubtful Accounts, credit balance of RM951. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?

.2. Perniagaan Hilayah uses the 1% of credit sales to compute the provision for doubtful debts. During 2012, Hilayah had RM12,500,000 in credit sales. Trade receivables at year end were RM800,500. What is the net realizable value of trade receivables at year ending 2012?

.3. At the beginning of the year, allowance for receivables was RM1,000. At the end of the year when receivables were RM18,500, a specific allowance was made for the whole of Song's debt of RM500 and for 80% of Shang's debt of RM1,000. It was decided to make a general allowance of 2% of remaining debts. What was the closing balance on the allowance for receivables account?

.4. Perniagaan Kamilla currently has a Provision for doubtful debts account with a credit balance of RM1,300. An aging of accounts receivable indicates that total accounts estimated to be uncollectible will be RM1,750. How much should be shown in the Statement of Comprehensive Income for provision for doubtful debts?

.5. A business makes a provision for doubtful debts equal to 5% of its trade receivables. At 31 March 2012, net trade receivables were shown in the Statement of Financial position as RM17,100. At 31 March 2013, the balance on its Sales Ledger Control account was RM19,000. In the year ended 31 March 2013, a bad debt of RM800 had been written off.How much should be debited in the Statement of Comprehensive Income for the year ended 31 March 2013 for the provision for doubtful debts?

.6. Cinta Enterprise uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of RM104,500, allowance for doubtful accounts of RM665 (credit) and sales of RM925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

.7. Tukang Jahit Expert has an accounting year ending on 30 November.The trade receivables as at 30 November 2012 were RM189,000. Included in this trade receivable figure was an amount of RM3,000 owed by Zarina which was thought to be irrecoverable. It also included amounts of RM2,400 owed by Azmi, RM1,500 owed by Lina and RM2,100 owed by Fatimah, all of which were regarded as doubtful. It is the practice of the business to provide a general provision for doubtful debts of 5% based on the trade receivable figures at year end. Calculate the amount of provision for doubtful debts to be reflected in the Statement of Financial Position as at 30 November 2012.

.8. At the beginning of the year, the allowance for receivables was RM850. At the year-end, the allowances required was RM1,000. During the year RM500 of debts were written off, which includes RM100 previously included in the allowance for receivables. What is the charge to income statement for bad debts and allowance for receivables for the year?

.9. A business has the following balances:

Trade receivables at 31 December 2012 RM125,400

Provision for doubtful debts at 1 January 2013 RM1,800

During the year ended 31 December 2012, bad debts of RM20,500 were written off. The company provides for 5% of trade receivables at each year end.What is the provision for doubt debts expense for the year ended 31 December 2012?

.10. Syarikat SPA purchased a general insurance for RM2,400 that covers a period of 12 months, commencing 1 March 2013. The business financial year end is 31 December. What should be the amount of prepayment as at 31 December 2013?

.11. A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on 31 December. This oversight would :

a. Have no effect on net income.

b. Understate net income by $28,000.

c. Overstate assets by $28,000.

d. Understate assets by $28,000.

e. Overstate net income by $28,000.

.12. The following information is extracted from the books of a company.

Building at cost RM125,000.

Accumulated depreciation RM50,000.

The company uses reducing balance method (rate is at 20% p.a.) to provide for depreciation.

How much is the depreciation expensefor the year?

.13.The table gives information relating to the non-current assets of a business:

Net book value at the end of the year RM25,000

Net book value at the beginning of the year RM16,000

Depreciation charge for the year RM5,000

Additions at cost during the year RM22,000. What is the net book value of disposals during the year?

.14. A company purchased RM4,000 worth of merchandise. Transportation costs were an additional RM350. The company later returned RM275 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is:

Select one:

a. RM3,925.00.

b. RM3,995.00.

c. RM4,000.50.

d. RM4,075.00.

e. RM3,725.00.

.15. Herald Company had sales of RM135,000, sales discounts of RM2,000, and sales returns of RM3,200. Herald Company's net sales equals:

Select one:

a. RM135,000.

b. RM133,000.

c. RM5,200.

d. RM140,200.

e. RM129,800.