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1)Nobisco Sdn Bhd has a debt of RM45,600.00 owing by Xion Sdn Bhd for more than 180 days. Attempts to contact the Company has been

1)Nobisco Sdn Bhd has a debt of RM45,600.00 owing by Xion Sdn Bhd for more than 180 days. Attempts to contact the Company has been unsuccessful. The Company decided to write off the debts in its accounts for the year ended 30 September 2004. Provide the double entries for the transaction.

2)If the Company merely makes an allowance for doubtful debts in full for the debts owing, provide the relevant double entries.

3)In relation to Question 2 above, on 15 June 2006, the debtor paid up the debts in full. Provide the double entries for the payment made. Since an allowance for doubtful debts had been made earlier, state the double entries to be made now that the allowance is not required anymore.

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