ACC 1101 TUTORIAL - TRADE RECEIVABLES 2 Question 1 At December 31, 2016, Casey Company reports total sales amounted to RM4,500,000, of which RM500,000 are cash sales and the rest are credit sales. In addition, its unadjusted trial balance includes the following items: Accounts receivables..... Allowance for doubtful accounts. RM480,000 debit RM6,500 credit Amount owed by a debtor, Milky Company, amounted to RM3,000, would most probably be uncollectible and the company decided to write it off. Bad debt expense is calculated at 0.2% of credit sales. A payment of RM2,000 was received from a debtor, Sunlite Company, whose account was written off last year. Required: 1. Prepare journal entries to record adjusting entries for uncollectible accounts on the basis of percent of sales method. 2. Open T-account for Allowance for Doubtful Accounts and post all relevant transactions. Other accounts are not required. 3. Show how Accounts Receivables and the Allowance for Doubtful Accounts appear on the company's statement of financial position on December 31, 2016