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QUESTION 5 The following information relates to Usaha Bhds accounts receivable: RM Opening Balance b/f 30,000 Provision for doubtful debts 2,500 Credit sales 150,000 Written-off
QUESTION 5
- The following information relates to Usaha Bhds accounts receivable:
| RM |
Opening Balance b/f | 30,000 |
Provision for doubtful debts | 2,500 |
Credit sales | 150,000 |
Written-off receivables | 1,600 |
Cash receipt from customers | 145,000 |
At the end of the period, Usaha Bhds estimates bad debts will equal 10% of year-end balance in accounts receivables.
Required:
- Calculate the bad debts expenses.
- Calculate the ending balance of provision for doubtful debt
(10 marks)
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