QUESTION 2: 2x19: Briar Supplies had opening balances on 1 January 2X19 on its Trade Receivables account and Provision for Bad Debts account of 900,000 and 50.000 respectively. During the year ended 31 December 2X19 Briar Supplies had credit sales of 1,320,000 and received cash from Trade Receivables of 985,000. Furthermore, at the 15 December 2X19 a credit customer of Briar Supplies who owed 160,000 went into liquidation and Briar Supplies was informed that the customer will only be able to pay 0.60 to every 1. In light of this at 31 December 2X19 Briar Supplies reviews its Trade Receivables listing and decides to be prudent and provides against 5% of the remaining Trade Receivables. 2X20 During the year ended 31 December 2X20 Briar Supplies has credit sales of 1,680,000 and received cash from Trade Receivables to the tune of 1.050,000. Once again credit customers defaulted on payment of 400,000. In light of the increasing occurrence of bad debts Briar Supplies decided to increase the provision to 10% of the remaining Trade Receivables. You are required to show the and to show the relevant extracts from the Statement of Profit or Loss and Statement of Financial Position for both years. Required (a) Show the Trade Receivables a/c, Provision for Bad Debts a/c and the Bad Debts a/c for the year ended 31 December 2X19 and 2X20 (26 marks) (b) Show the relevant entries to the Statement of Comprehensive Income and the Statement of Financial Position for the year ended 31 December 2X19 and 2X20. (8 marks)