Hector Limited has the following accounts receivables classified into individual significant and other receivables.

The following are individually significant receivables:

YANS Kshs. 400,000

Radar Kshs. 1,000,000

Black Kshs. 500,000

Fernando Kshs. 600,000 All the other receivables totalled Kshs. 1,500,000.

Hectors has determine that Yan's balance is impaired. The balance for Radar and Fernado are no considered impaired, It is the practise of Hector Limited to impair all other receivables at 2%

required

A) Discuss the impairment evaluation process for receivable per IAS 39.

B) what are the possible loss events that will necessitate impairment evaluation process C) Compute impairment loss.

D) Prepare relevant journal entry.