20 Marks (Question 6) Question 5 and 6 are related to Jati Sdn Bhd. Johan who runs the furniture shop, Jati Sdn Bhd have the following summary of the trade receivable and related accounts for the year ended 31 December 2017 until 2019. Year Trade receivables Rates of provision for doubtful debts Rates of provision for discount allowable Bad debt for the year (before written off) RM 3,600 5,400 4,800 % 5 RM 70,500 65,500 82,400 2017 2018 2019 % 4 3 3 4 4 During the year ended 31 December 2020, the following transactions took place: (i) On 1 February 2020, the company sold RM25,500 of three set of sofa to Alif Syukri Trading and received 40 percent cash payment for this sales transaction. Alif Syukri Tradinf received a credit term 5/20 net 30. (ii) On 10 May 2020, Encik Khamis purchase a set of dining table for his wife amounting RM1,500 on credit. (iii) On 15 June 2020, Alif Syukri Trading retum back one set of sofa due to colour defect. The price of one set is RM8,500. (iv) On 1 August 2020, Encik Khamis paid amount owing by cheque with a 5% cash discount received. (v) On 11 September 2020, one of the debtor repaid debt of RM10,400 by cheque although this debt was previously written off as bad. (vi) On 1 December 2020, debts of RM5,400 are to be written off as bad. (vii) The provision for doubtful debts was to be maintained at 4% of the account receivable balance. Provision for discount allowable was to be at 4% of potentially good debtors. 6. Referring to information generated in question 5, you are required to prepare the following: (a) Provision for doubtful debts and provision for discount allowable accounts for the year ended 31 December 2018 until 2020. (10 marks) (b) Extract Statement of Profit or Loss for the year ended 31 December 2020. (5 marks) (c) Extract Statement of Financial Position as at 31 December 2020