b

On 21 May Malcom Ltd ordered goods for 73,000 from Xie Ltd. for delivery on 3 June. They agreed credit terms of 60 days. 30,000 were paid by Malcom Ltd when the order was placed. The goods will cost Xie Ltd. 51,000 to manufacture. On 3 June, Xie Ltd. delivered the goods to Malcom Ltd and presented them with an invoice for 73,000 with a due date of 2 August. On 2 July, Xie Ltd were informed that Malcolm Ltd had defaulted on a loan. Based on this evidence, Xie Ltd estimated impairment allowance for half of the payment that was still outstanding from Malcolm Ltd. On 10 December, Malcom Ltd paid 35,000 for the goods to Xie Ltd. Show the double entries to record all the transactions that have taken place in the accounts of Xie Ltd at each date mentioned in the scenario. Specify which accounts should be debited and credited and by how much. (10 marks)