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Fast answer will be liked. Thank you! You are required to prepare the following accounts for the years 20X6, 20X7 and 20X8 in order to
Fast answer will be liked. Thank you!
You are required to prepare the following accounts for the years 20X6, 20X7 and 20X8 in order to answer Questions 14-20. (a) Bad Debts Account; (b) Bad Debts Recovered Account; (c) Provision for Doubtful Debts Account; (d) Extract from the Profit and Loss Account. Hala commenced business on 1 January 20x6 and prepares her financial statements to 31 December every year. For the year ended 31 December 20X6, bad debts written off amounted to RM2,000. It was also found necessary to create a provision for doubtful debts of RM4,500 In 20x7, debts amounting to RM3,400 proved bad and were written off. Yong, whose debt of RM1,200 was written off as bad in 20X6, settled (BDR) her account in full on 30 November 20x7. As at 31 December 20x7 total debts outstanding were RM90,000. It was decided to bring the provision up to 8% of this figure on that date in 20x8, RM5,000 debts were written off during the year, and another recovery of RM2.300 (BDR)was made in respect of debts written off in 20x6. As at 31 December 20x8, total debts outstanding were RM80,000. The provision for doubtful debts is to be increased to 5% of this figure QUESTION 19: Balance b/d of Allowance for Doubtful Debts for the year 20x8 A. 7,000 B. 7,200 O C. 7,500 O D. 2,700 QUESTION 20: Balance c/d of Allowance for Doubtful Debts for the year 20x8 A. 2,700 B. 4,500 C. 3,200 D. 4,000Step by Step Solution
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