1. Alpha Companys accounts receivable and allowance for doubtful accounts balances were RM100,000 and RM14,000 (credit) respectively, at the beginning of 2019. During 2019, a customer defaults on a RM12,000 balance related to goods purchased during 2018. By the end of the year, the company had made credit sales of RM2,400,000 and collected RM2,200,000 on account. It now estimates that 1 percent of its credit sales will default.

Required:

1. Prepare the journal entry to record the write off for bad debt

(2 marks)

2. Prepare the adjusting entry to record bad debt expense for 2019

(3 marks)

3. What is the net accounts receivable balance at the end of the year?

(5 marks)