Question
Katta Kayu Sdn Bhd had a balance in its Allowance for Doubtful account of RM12,000 as at 1 January 2021. The following transactions and events
Katta Kayu Sdn Bhd had a balance in its Allowance for Doubtful account of RM12,000 as at 1 January 2021. The following transactions and events affected the Allowance for Doubtful account during the current year: March 15 One of the account receivables of RM5,500 was deemed uncollectible May 1 Another receivable who had been written-off in the previous year, paid full amount RM2,000. Dec 31 Estimated that RM10,000 of accounts receivable balance would be uncollectible.
Required
(i) Prepare the journal entries to record the above transactions. Show all workings. (5 mark)
(ii) State the amount that should be reported in Allowance of Doubtful account in the Statement of Financial Position at 31 December 2021. (1 mark)
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