TOPIC : Sales and Account Receivables Question 3: On December 31, 2019, Kirana Company had the following account balances related to credit sales and receivables prior to recording adjusting entries: Accounts receivable RM25,000 Allowance for doubtful accounts 2001 credit balance Sales revenue (all credit sales) 400,000 Required: Prepare the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions: a. An aging of accounts receivable is completed. It is estimated that RM2,150 of the receivables outstanding at year-end will be uncollectible. (2 marks) b. Assume the same information presented in part A above except that, prior to adjustment, the allowance for doubtful accounts had a debit balance of RM200 rather than a credit balance of RM200. (2 marks) C. It is estimated that a provision for bad debts is required for 1% of credit sales for the year (2 marks)