Question
Syarikat Cekodok starts trading in the year of 2016, he had the following trade receivables at the end of the past five years: For the
Syarikat Cekodok starts trading in the year of 2016, he had the following trade receivables at the end of the past five years:
For the year ended | Bad debts written off during the year (RM) | Net accounts receivable at year end (RM) | Percentage rate of allowance for doubtful debts (%) |
2016 | - | 31,000 | 5 |
2017 | 3,560 | 42,000 | 5 |
2018 | 5,100 | 48,000 | 3 |
2019 | 4,200 | 52,000 | 4 |
On 6 September 2019 Cekodok has found an additional RM2,000 to write off from the accounts receivable.
Required:
a. Prepare the following accounts in the ledger of Cekodok for each of the years ended 31 December 2016 to 2019:
i. Bad Debts
ii. Allowance for Doubtful Debts
b. Copy the table given below, enter the amount of allowance for doubtful debts that appeared in the Income Statement, making clear whether they are debit or credit.
Year | Income Statement | |
Debit RM | Credit RM | |
2016 | ||
2017 | ||
2018 | ||
2019 |
c. Show the Balance Sheet extract in respect of trade receivables for each of the years ended 31 December 2016 to 2019.
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