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)