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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

  1. 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:

  1. Calculate the bad debts expenses.
  2. Calculate the ending balance of provision for doubtful debt

(10 marks)

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