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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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