SECTION A Question 1 526 The following is the trial balance extracted from the books of Wendy Enterpise as on 31 Dec 2021 Dr (RM) Cr (RM) Inventory as at 1 January 2021 1,978 Insurance 6,589 Interest 125 Discounts 856 Bad debts 485 Office furniture 15,600 Delivery van 2,500 Purchases 26,428 Returns 2.400 1.854 Commission 1,869 Sales 38.110 Cash in hand 5,841 Carriage inwards 258 Rent 3,000 Salaries to salesmen 4,608 Delivery van expenses Loan 4,000 Capital 22.450 Drawings 504 Trade receivables and payables 6.794 9.215 78.360 78.360 Note: Closing Inventory as at 31 December 2021 was RM3,292 724 Required: (a) Prepare Income Statement for the year ended 31 December 2021. (12 marks) (b) Prepare Balance Sheet as at 31 December 2021. (8 marks) (Total : 20 marks) Question 4 In the year, Jack owed RM2,000 and Rose owed RM5,000 to Wakanda Enterprise. At the end of the year, both of the indicated they won't be able to pay and it was decided that their debts should be written off Required: a) Prepare the Bad Debts and Trade Receivable Account (6 marks) b) State why the bad debts goes to the Income statement (4 marks) Mr.T. Challa set up his firm on 1 Jan 2018. The total amount of Trade Receivables in the books was RM100,000 on 31 Dec 2018. He decided to write off 10% of the receivables as the Allowance for Doubtful Debts for the year ending 31 Dec 2018. The Trade Receivables was RM 200.000 in the year 2019 and RM 150,000 in the year 2020. The rate remained at 5% Required: c) Prepare a Doubtful Debts account for the year 2018, 2019 and 2020 (4 marks) d) Prepare a Provision for Doubtful Debts account for the year 2018, 2019 and 2020 (6 marks) (Total : 20 marks)