At December 31, 2020, Sumon Enterprise reported the following information (in BDT) on its balance sheet. Accounts receivable 12, 60,000 Less: Allowances for bad debts 1, 00,000 During 2021, the company had the following transactions related to receivables: 1. Sales on account 35,00,000 2. Sales returns and allowances 50,000 3. Collection of accounts receivable 25,00,000 4. Write-offs of accounts receivable deemed uncollectible 80,000 5. Recovery of bad debts previously written off as uncollectible 24,000 Required: a) Prepare the journal entries for these five transactions. Assume that a discount of Tk. 75,000 was taken on the collection of accounts receivable. b) Prepare two ledger accounts: Accounts receivable and allowances for bad debts. c) Prepare the journal entry to record bad debt expense for 2021, assuming that an aging of receivable indicates that expected bad debts are Tk. 1, 25,000. d) Two bases are normally used to determine the amount under the allowance method: percentage of sales and percentage of receivable basis. If the management of Sumon enterprise wants to give emphasis on matching of expenses with revenues, which basis they will apply in determining the amount under the allowance method? Explain in brief.

4. stion # !! At December 31, 2020, Sumon Enterprise reported the following information in BDT) on its balance sheet. Accounts receivable 12, 60,000 Less: Allowances for bad debts 1,00,000 During 2021, the company had the following transactions related to receivables: 1. Sales on account 35,00,000 2. Sales returns and allowances 50,000 3. Collection of accounts receivable 25,00,000 Write-offs of accounts receivable deemed uncollectible 80,000 5. Recovery of bad debts previously written off as uncollectible 24,000 Required: a) Prepare the journal entries for these five transactions. Assume that a discount of Tk. 75,000 was taken on the collection of accounts receivable. b) Prepare two ledger accounts: Accounts receivable and allowances for bad debts. c) Prepare the journal entry to record bad debt expense for 2021, assuming that an aging of receivable indicates that expected bad debts are Tk. 1,25,000. d) Two bases are normally used to determine the amount under the allowance method: percentage of sales and percentage of receivable basis. If the management of Sumon enterprise wants to give emphasis on matching of expenses with revenues, which basis they will apply in determining the amount under the allowance method? Explain in brief