Professional Documents
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Required:
1. Prepare journal entries to record the following selected October transactions.
2. Show how accounts receivable and allowance for doubtful debts accounts appear on its
October 31 statement of financial position.
Question 3
At December 31, 2015, MP Company reports the following results for the year:
Cash sales
Credit sales
RM1,015,000
RM1,241,000
RM475,000 debit
RM5,200 credit
There was objective evidence that 9% of a RM50,000 debt owed by a debtor, NB Company,
would most probably be uncollectible. An aging analysis of the rest of the accounts receivable
indicated that as estimated 4% of these accounts would not be collectible.
Required:
1. Prepare the adjusting entry for MP Company to recognise bad debts.
2. Show how Accounts Receivables and the Allowance for Doubtful Accounts appear on the
companys statement of financial position on December 31, 2015.
Question 4
Prepare journal entries to record these selected transactions for Kazen Sdn. Bhd.
Feb 1
Sold goods worth RM6,000 to Mr. Salam on credit. Credit term 3/15, n 60.
May 1
Oct 31
Mr. Salam honors his note and made payment together with interest.