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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
- 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:
- Bad debts accounts for each of the four years. (4 marks)
- Provision for doubtful debts accounts for each of the four years. (8 marks)
- 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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