B. The balances extracted from the Statement of Financial Position of Bahtera Klasik Bhd as of 31 December 2020 are as follows: 2 Jan Accounts receivable Allowance for doubtful debts 3 Jan RM 1,200,000 The following transactions are related to the purchases and sales for Bahtera Klasik Bhd for the month of January 2021. The company records the sale and purchase transactions using gross method and periodic inventory system. 1 Jan (10,000) 1,190,000 Assigned RM48,500 of accounts receivable to Amanah Bank Bhd, as security for a loan of RM40,000. A commission (finance charge) of 6% on the face amount of the loan was charged, and the note bears interest of 9% per year. Received RM45,000 from customers on account. Sold goods to Putra Bhd amounted to RM95,500 on credit with term 2/10, n/30.

B. The balances extracted from the Statement of Financial Position of Bahtera Klasik Bhd as of 31 December 2020 are as follows: 2 Jan Accounts receivable Allowance for doubtful debts 3 Jan RM 1,200,000 The following transactions are related to the purchases and sales for Bahtera Klasik Bhd for the month of January 2021. The company records the sale and purchase transactions using gross method and periodic inventory system. 1 Jan (10,000) 1,190,000 Assigned RM48,500 of accounts receivable to Amanah Bank Bhd, as security for a loan of RM40,000. A commission (finance charge) of 6% on the face amount of the loan was charged, and the note bears interest of 9% per year. Received RM45,000 from customers on account. Sold goods to Putra Bhd amounted to RM95,500 on credit with term 2/10, n/30.

Name: Q3B(a) Prepare the journal entries for the above transactions in the b
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Description: Q3B(a) Prepare the journal entries for the above transactions in the book of Bahtera KlasikBhd for the month of January 2021.(b) Discuss how bad debts are accounted for under the direct write-off method. (c) Explain ONE (1) advantage of the allowance

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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