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Angel Sdn. Bhd. began operations in 2019. In the first two years, the company recorded the following: 2019 i. Sales of RM2,180,000 on credit ii.
Angel Sdn. Bhd. began operations in 2019. In the first two years, the company recorded the following: 2019 i. Sales of RM2,180,000 on credit ii. Total accounts receivable collected of RM1,340,000 iii. Total uncollectible accounts receivable of RM14,000 written off to the bad debt account iv. At year end 30 November 2019, 2% of balance in accounts receivable is estimated to be the ending allowance for bad debts 2020 i. Sales of RM2,750,000 on credit ii. Total accounts receivable collected of RM1,588,000 iii. Total uncollectible accounts receivable of RM22,000 written off to the bad debt account iv. At year end 30 November 2020, 2% of balance in accounts receivable is estimated to be the ending allowance for bad debts Required: 1. In 2019, the amount written off as bad debts RM should be (debited/credited) to the Allowance for Doubtful Debts Accounts. 2. In 2020, the total bad debts expense is RM Profit and Loss. and this should be (debited/credited) to the Statement of
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