What is the ending balance of allowance for doubtful debts as at 31 December 20x7? 2 What is the journal entry to record the amount Chapter 10 Bad Debts Allowance for Doubtful Debts, and Allowance for Discounts 257 A RM1,150 BRM650 CRM520 DRM690 of returns inwards? A Debit Accounts receivable RM3,000 Credit Returns inwards RM3,000 B Debit turns inwards RM3,000 Cred Accounts receivable RM3,000 C Debid debts RM1,000 CreReturns inwards RM1,000 D Debit turns inwards RM3,000 Credit Bad debts RM3,000 3 What is the amount of sales to be included in the accounts receivable account? A RM75.000 B RM100,000 CRM70,000 D RM85,000 4 Which of the following is the correct journal entry to write off a debtor who has been declared as bankrupt? Debit Credit A Bad debt expense Accounts receivable B Accounts receivable Bad debt expense C Doubtful debts Accounts receivable expense D Accounts receivable Allowance for doubtful debts 5 Anis supplies stationery to her customers on credit. Based on previous years' trends, 2% of her accounts receivable will turn bad. To be prudent, she wants to record this potential loss in her books. Which of the following is the correct journal entry to record this estimate? Debit Credit Bad debt expense Accounts receivable B SPLOCI Allowance for doubtful debts C Allowance for Accounts receivable doubtful debts D Allowance for SPLOCI doubtful debts 6 The following is the trial balance extract of Dahlia Enterprise as at 31 July 20x8: Particulars Debit Credit (RM) (RM) Accounts receivable 39,000 Allowance for doubtful debts 1,800 (1 August 20x7) It is the policy of Delima Enterprise to provide for doubtful debts at 5% on accounts receivable. Calculate the amount of doubtful debts that will be recorded in the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 July 20x8. A Debit RM180 B Credit RM180 C Debit RM1,980 D Credit RM1,980 7 An allowance for doubtful debts account is created to estimate A the amount of expected bad debts. B the amount of expected bad debts recovered Cthe expected number of debtors. D the expected number of creditors. 8 Your friend Normala has just started a business and she asked you the following question related to her business accounting records: What are 'bad debt' and 'doubtful debt'? Explain the differences between the two terms to her. Semanis Kurma Enterprise closes its accounts on 30 June every year. The following is the 256 Fundamec Finance Acounting 9 The following information is available for Anis Printing as at 30 June 20x8: Allowance for Accounts receivable Allowance for doubtful Bad debts to be doubtful debts as at 30 June 20x8 debts at 1 July 20x7 written off 2% RM50,450 RM450 RM3,000 Choose the correct entry: Debit Credit A SPLOCI RM1,000 Allowance for doubtful debts RM1,000 B Allowance for doubtful debts RM1,000 SPLOCI RM1,000 C SPLOCI RM2,000 Allowance for doubtful debts RM2,000 D Allowance for doubtful debts RM2,000 SPLOCI RM2,000 10 The following double entries are extracted from the books of Ping Wai Trading: Transactions Debit Credit I To record bad debts of RM300 Bad debts RM300 Accounts receivable RM300 II To increase doubtful debts SPLOCI RM500 Doubtful debts allowance from RM200 to RM500 allowance RM500 III To reduce discounts allowable from SPLOCI RM200 Allowance for discounts RM900 to RM700 allowable RM200 IV To record discounts received of Accounts payable RM250 SPLOCI RM250 RM250 V To record discounts given of RM100 Accounts receivable RM100 SPLOCI RM100 Choose the entry or entries to be corrected: AI and IV only C II, III and V only B I, II and V only D All of the entries PROBLEM QUESTIONS Complete all the questions provided. Question 1 information regarding accounts receimhl