A business makes a provision of RM$3,000,$ which was $2\%$ of all his trade receivables,

and a further expected loss of RM$1,200,$ the total amount owed by one of its

customers, Franklin, who had been declared bankrupt.

Required:

a$.$ Determine the amount of general and specific provision for doubtful debts.

$(5$ marks$)$

b$.$ Prepare Journal Entries for the above transactions. Narratives are required.

$(10$ marks