3.Sherry owns a boutique, Mutiara Collection, at KLCC. The boutique sells traditional costumes and accessories. The following balances were extracted from the accounting books of Mutiara Collection as at 31 December 2014. Account Dr Cr RM RM Opening stock/inventory as at 1 40,000 January 2014 Sales returns 4,000 Purchases returns 6,000 Carriage inwards 7,000 Carriage outwards 4,400 Purchases 171,000 Sales 300,000 Discount received 6,400 Commission received 4,600 Rental expense 28,000 Salary 33,000 Salesman commission 2,600 Discount allowed 5,200 Interest expense 5,000 Provision for doubtful debts 1,000 Provision for depreciation - 28,000 Delivery van Provision for depreciation - 12,000 Costumes cabinet Provision for depreciation - Office 10,000 equipment Delivery van 70,000 Costumes cabinet 60,000 Office equipment 50,000 Accounts receivable 20,000 Accounts payable 42,000 Telephone & electricity expense 10,000 Insurance expense 9,000 Cash at bank 50,000 Cash in hand 3,000 Bank loan 100,000 600 64,800 573,800 573,800 Drawings Capital The following adjustments need to be considered as at 31 December 2014: a. The rental expense is RM2,000 per month. Sherry paid rental in advance for 2 months. b. C. d. The salary for the fashion designer amounting to RM3,000 was still unpaid. One of the business customers was declared bankrupt and unable to settle his debts. The customer still owed RM4,000. Provision for doubtful debts need to be provided at 5% of net accounts