Sherry owns a boutique, Mutiara Collection, at KLCC. The boutique sells traditional costumes and accessories. The following balances were extracted from the book of Mutiara Collection Question 8 as at 31 December 20x7. 40,000 Inventory as at 1 January 20x7 4,000 Returns inwards 6,000 Returns outwards 7,000 Carriage inwards 5,600 Duty on purchases 4,400 Carriage outwards 160,000 Purchases 300,000 Sales 6,400 Discount received 5,400 Insurance on purchases 4,600 Commission received 28,000 Shop rental 33,000 Salary 2,600 Salesman commission Discount allowed 5,200 5,000 Interest expense Allowance for doubtful debts 1,000 Allowance for depreciation: - Delivery 28,000 van - Costumes cabinet 12,000 - Office equipment 10,000 Delivery van 70,000 Costumes cabinet 60,000 Office equipment 50,000 RM 20,000 Accounts receivable 40,000 Accounts payable 10,000 Telephone and electricity 8,000 Insurance 1,000 Bad debts 50,000 Cash at bank 3,000 Petty cash 100,000 Loan from CIMB (10% p.a.) 600 Drawings 64,800 Capital The following adjustments need to be considered as at 31 December 20x7: 1 The shop rental is RM2,000 per month. Sherry paid rental in advance for 2 months 2 The salary for the fashion designer amounting to RM3,000 was still unpaid. 3 Interest on loan from CIMB for half a year was 4 One of the customers was declared bankrupt and unable to settle his debts. The customer still owed RM4,000 outstanding. sundry debtors need to be provided at 5% of net debtors. 5 Allowance for doubtful debts on 6 Depreciation on a yearly basis is to be provided as follows: 20% using reducing balance method 5% using straight-line method 15% using straight-line method Delivery van Costumes cabinet Office equipment 7 Sherry withdrew petty cash amounting to RM200 and took a pair of bracelets amounting to RM1,000 for her daughter's wedding 8 Inventory as at 31 December 20x6 was RM32,000. Required: (a) Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 20x7 (b) Prepare the Statement of Financial Position as at 31 December 20x7