Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 Aziz Enterprise decides to create a provision for doubtful debts equivalent to 4% of debtors at the year-end. The Bad debts and debtors

image text in transcribed

Question 1 Aziz Enterprise decides to create a provision for doubtful debts equivalent to 4% of debtors at the year-end. The Bad debts and debtors figure for the years ended 31 December are as follows: Year Bad Debts HIT 2017 2018 2019 2020 RM1,200 RM490 RM1,120 RM980 Debtors (After Bad Debts Written Off RM12,500 RM9,800 RM11,650 RM13,400 Debt amounting to RM1,530 proved bad and were written off in 2016, was received in full on 30 March 2019. Required: (a) Show the provision for doubtful debts account for the years 2017-2020. (12 marks) (6) Prepare the Bad Debts account for years 2017-2020 (8 marks) (c) Explain the term "Bad Debts" and provide TWO (2) reasons that may cause it

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide/Workbook To Accompany Intro To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

5th Edition

0077243641, 978-0077243647

More Books

Students also viewed these Accounting questions