The following transactions of Fai Town Inc. occurred during the year. (a) On December 15, 2020, the company declared a KD 3 per share dividend on the 42.000 ordinary shares outstanding, to be paid on January 5, 2021. (b) Bonuses promised to key employees but have not been given to them yet. These bonuses are based on their performance and are estimated to be 6% of net income, which was KD 3,150,000. (c) During the year, customer advances of KD 305,000 were received; KD 97,000 of this amount was earned by year end. (d) Credit sales for the year amounted to KD 9,800,000. Arnold's expense provision for doubtful accounts is estimated to be 4% of credit sales. (e) On October 1, 2020, the company issues a KD 700,000 9% 1 year note.