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In a new business during the year ended 31 December 2020 the following debts are found to be bad and are written off on the

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In a new business during the year ended 31 December 2020 the following debts are found to be bad and are written off on the dates shown: Richard RM840 Ah Chong RM930 31 May 2020 30 September 2020 30 November 2020 20 December 2020 Selina RM720 Fatimah RM650 On 31 December 2020 the schedule of remaining accounts receivable totalling RM47,500 is examined and it is decided to make a provision for doubtful debt of 5%. Required: Prepare the ledgers for bad debts account and the provision for doubtful debts account. [5 Marks] Show relevant extract from Statement of Comprehensive for the year ended 31 December 2020. [3 Marks]

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