On December 31, 2004, Karimah Sdn. Bhd. (KSB) reported the following information on its balance sheet:

Balances in accounts receivable RM 42,600 Allowance for Doubtful Accounts RM 852

On December 31, 2005, the following selected transactions occured:

Sales (40% were by cash) RM 255,000 Sales returns (for credit sales) RM 4,200 Received payment from account receivable RM 172,500 Write-offs of accounts receivable RM 900 Additional information: Allowances for Doubtful Accounts on December 31, 2005 is estimated to be 2% of the balances in accounts receivable.

INSTRUCTIONS: i. Prepare the journal entry to record transactions occurred at December 31, 2005 ii. Determine the balances in Accounts Receivable and Allowance for Doubtful Accounts at December 31, 2005 by using T accounts. iii. Prepare the journal entry to record adjustments related to Accounts Receivable on December 31, 2005.

Answer rating: 100% (QA)

Answer To solve this problem we need to follow these steps i Prepare the journal entry to record tra... View the full answer