Rosemary Berhad is a distributor of New Zealand dairy products in Malaysia. The relevant account balances of Rosemary on December 31, 2016 are shown below: Trade receivables: Retailer - Retailer 2 Allowance for doubtful debt RM26,000 RMI4,000 RM1,000 It is the policy of the company to: - Allow a trade discount of 2% if value of purchases exceeds RM50,000. - Offer a credit term of 4/30, net 60 to all its customers. - Write off trade receivable that is still outstanding after 6 months from the date of sale. The following transactions occurred in the year 2016: Feb 19 Received payment from Retailer 1 for full settlement of outstanding amount. Apr 5 May 15 June 1 July 18 Aug 16 Sold goods to Retailer 3, RM8,000 on credit. Write off Retailer 2 account After discussion with Retailer 2, Rosemary agreed to accept RM4,000 cash, paid immediately, as part settlement of the outstanding amount. The balance is paid using 5%, 9-inonth note receivable. Sold goods to Retailer 1, RM60,000 on credit. Received payment from Retailer 1 for full settlement of outstanding amount. Write off Retailer 3 account. Sold goods to Retailer 1, RM55,000 on credit. It is estimated that 2.5% of trade receivables will be uncollectible. Oct 6 Nov 5 Dec 31 Required: a) Prepare the ledger accounts of Retailer I, Retailer 2 and Retailer 3 for the year 2016 to record the above transactions. (6 marks) b) Prepare the ledger account of Allowance for Doubtful Debts for the year 2016 and calculate bud debt expense for the year. (2 marks)