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The financial year end of the clothing wholesaler is 31 December. You have been provided the following information by the management of the company: Year

  1. The financial year end of the clothing wholesaler is 31 December. You have been provided the following information by the management of the company:

Year

Bad debts written off year to 31 December

Accounts receivable at 31 December after bad debts written off

Percentage allowance for doubtful debts

1

Use any amount between RM2, 000 and RM3, 000

Use any amount between RM50, 000 and RM60, 000

3

2

Use any amount between RM4, 000 and RM4, 900

Use any amount between RM80, 000 and RM85, 000

5

3

Use any amount between RM1, 000 and RM2, 500

Use any amount between RM65, 000 and RM75, 000

2

4

Use any amount between RM2, 800 and RM5, 500

Use any amount between RM90, 000 and RM100, 000

4

Prepare the following:

  1. Bad debts accounts for each of the four years. (4 marks)
  2. Provision for doubtful debts accounts for each of the four years. (8 marks)
  3. The statement of financial position extracts as at 31 December Year 1, Year 2, Year 3 and Year 4. (4 marks)

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