A business started trading on 1 January 2019. During the two years ended 31 December 2019 and 2020 the following debts were written off to the Bad Debts Account on the stated below:

31 May 2019 Halim RM200

31 October 2019 Mary RM300

31 January 2020 Maniam RM100

30 June 2020 Chan RM400

31 October 2020 Firdaus RM50

On 31 December 2019 the total accounts receivable was RM55,000. It was decided to make an allowance for doubtful debts of RM800.

On 31 December 2020 the total accounts receivable was RM59,000. It was decided to make an allowance for doubtful debts of RM900.

You are required to prepare:

The Bad Debts Account and the Allowance for Doubtful Debts Account for each of the two years. (12 marks)

The relevant extracts from the Statement of Financial Position as at 31 December 2019 and 2020.