Case No. 1 The following are the ledger balances taken from the books of Reem Batteries Company. Accounts Receivable Account as on December 31, 2019 OMR 390,000 Allowance for Doubtful Debts Account before adjustment as on January 1, 2019 OMR 2,900 (Dr.) Total Sales OMR 900,000 Cash sales OMR 200,000 The aging schedule of receivables as of December 31, 2019 is given below: Customer Balance OMR Days past due (OMR) (Not 1-30 Over 181-365 31-60 61.90 91-180 past (OMR) (OMR) 365 due) (OMR) (OMR) (OMR) (OMR) Moahmmed 58,000 14,000 44,000 Minha 49,000 33,000 16,000 Yasmeen 61,000 19,000 42,000 Abdullah 92,000 46,000 46,000 Mugheera 73,000 11,000 62,000 Murshid 57,000 16,000 41,000 Total ? ? 2 ? 2 % Uncollectible 8% 15% 28% 45% 65% 80% ? Additional information: On March 1, 2019 OMR 850 of accounts receivable originating in 2018 is written off as uncollectible. Question No.1 You are required to; (0) Using aging of receivables method prepare necessary journal entries and Allowance for Doubtful Debts Account. Also calculate the net realizable value of receivables as on December 31, 2019. (6 Marks) (ii) Explain why writing off a bad debt against the allowance account does not reduce the estimated realizable value of a company's accounts receivable. (2 Marks) (iii) Explain the accounting principle of materiality. (2 Marks)