Solve Question 4 (5 ticks) The following are information about the company's account receivable during the year 2019.
Debit
RM
Credit
RM
560,000
Credit sales revenue
Account receivable
Allowance for doubtful account
120,000
3,400
a. If one of the customers is declared a bankrupt and he owes the company account
receivable amounting RM2,700, record the write-off.
b. If part of the debt in (c) above is recovered in June 2020, let's say RM1,700, how do
you record the recovery and subsequent collection of cash?
c. Assume the company uses 0.5% of sales revenue to estimate its bad debt expense for
the year.
d. Assume the company uses 5% of accounts receivable to estimate its bad debt expense
for the year.
Required:
(1)
Record the journal entries for (a) to (d).
Open-up the Accounts Receivable and the Allowance for Doubtful Account and
bring down the balances for information (a), (b) and (d).
Using information in (a), (b), and (d) above, show how the account receivable is
reported on the Statement of Financial Position.