Question 3 (30 Marks) a. The December 31, 2019 statement of financial position of Malibu Sdn Bhd had Accounts Receivable of RM500,000 and a credit balance in Allowance for Doubtful Accounts of RM33,000. During 2020, the following transactions occurred: sales on account RM1,300,000; sales returns and allowances, RM50,000; collections from customers, RM1,215,000; accounts written off RM35,000; previously written off accounts of RM5,000 were collected. Required i Show the journal entries for transactions during 2020. [6 marks] ii. If the company uses the percentage-of-sales basis to estimate bad debts expense and anticipates 2% of net sales to be uncollectible, what is the adjusting entry at December 31, 2020? [4 marks] b. At December 31, 2019, Durango Berhad reported the following as plant assets. RM2,000,000 Land Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total plant assets RM28,500,000 12,100,000 30,000,000 4,000,000 16,400,000 26,000,000 RM44,400,000 During 2020, the following selected cash transactions occurred. Mar 1 Purchased land for RM1,350,000. April 1 Sold equipment that cost RM420,000 when purchased on January 1, 2016. The equipment was sold for RM204,000. Dec 31 Retired equipment that cost RM300,000 when purchased on December 31, 2010. No residual value was received. Durango Berhad uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year useful life and no residual value. The equipment is estimated to have a 10-year useful life and no residual value. Update depreciation on assets disposed of at the time of sale or retirement. Required i Journalize the transactions during 2020. [8 marks] ii. Record adjusting entries for depreciation for 2020. [4 marks] 111. Prepare the plant assets section of Durango Berhad's statement of financial position at December 31, 2020. [8 marks]