Normaslına Taib sells goods on credit and bas prepared the following information for the last 3 years. Her financial year ends on 31 May Year Year 8 RM140,000 RM148.000 RM132,000 RMS00 Year 9 Customer balances at 31 May Bad debts to be wnitten off at 31 May RM900 RM600 Provision for Doubtful Debts To be adjusted to % of net customer balance 20% On 1 June Year 6 the balance on the Provision for Doubtful Debts Account was RM2.150, Required Prepare for each of the 3 years, the following Ledger Accounts a) Bad Debts:
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
