In January, Lily Bhd sold goods at a quoted price of RM10,000 with a credit term of 2/10, net 90. Show the journal entries and amount to be measured in the receivables account; 

i. When cash discount of 2% is to be applied. (3 Marks) 

ii. At initial measurement (2 Marks)

 iii. During the year, a customer of Lily Bhd was deemed uncollectable. Give examples of any five situations where a debtor can be declared as Uncollectable Receivables. (5 Marks).

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Answer rating: 100% (QA)

i January 1 Sale of goods on account for RM10000 January 2 Cash discount of 2 January 10 Net 90 Janu... View the full answer