Technology Bhd manufactures and markets industrial products throughout Malaysia. The following transactions were occurred by the...

 

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Technology Bhd manufactures and markets industrial products throughout Malaysia. The following transactions were occurred by the company during the year 2020: 25 March 2020 29 April 2020 15 May 2020 28 October 2020 Technology Bhd sold merchandise to Kencang Bhd at price of RM10,000 with term 2/10, n/60. Accounts receivable of RM12,000 are factored to Rahim Credit Bhd without guarantee at a financing charge of 9%. Cash is received for the proceeds and collections are handled by Rahim Credit Bhd. Specific accounts receivable of RM9,000 is pledged to Wong Credit Bhd for a loan of RM6,000 at a finance charge of 6% of the amount of the loan. The Wong Credit Bhd will make the collections. Kencang Bhd notifies Technology Bhd that it has been declared bankrupt and will only be able to pay 10% of its account. 31 December 2020 Technology Bhd conducts an individual assessment of a note receivable with a carrying value of RM350,000. Technology Bhd determines the present value of the note is RM275,000. Additional Information: 1. The company records its sales using net method. 2. The company uses allowance method to record doubtful debts. REQUIRED: Prepare the appropriate journal entries to record the above transactions for Technology Bhd. On 31 December 2020, the balance in Spring Time Berhad's accounts receivable was RM256,000 and Allowance for doubtful account (before adjustment) was RM 26,320. The information on the age of receivables is as follows: Days Account Outstanding Less than 15 days 16-30 days 31-45 days 46-60 days REQUIRED: (a) Determine the appropriate balance of allowance for doubtful account on 31 December 2020. (b) Prepare the related journal entries for bad debt expense. Amount RM96,000 RM66,000 RM59,000 RM35,000 Estimated % uncollectible 2% 10% 25% 40% Technology Bhd manufactures and markets industrial products throughout Malaysia. The following transactions were occurred by the company during the year 2020: 25 March 2020 29 April 2020 15 May 2020 28 October 2020 Technology Bhd sold merchandise to Kencang Bhd at price of RM10,000 with term 2/10, n/60. Accounts receivable of RM12,000 are factored to Rahim Credit Bhd without guarantee at a financing charge of 9%. Cash is received for the proceeds and collections are handled by Rahim Credit Bhd. Specific accounts receivable of RM9,000 is pledged to Wong Credit Bhd for a loan of RM6,000 at a finance charge of 6% of the amount of the loan. The Wong Credit Bhd will make the collections. Kencang Bhd notifies Technology Bhd that it has been declared bankrupt and will only be able to pay 10% of its account. 31 December 2020 Technology Bhd conducts an individual assessment of a note receivable with a carrying value of RM350,000. Technology Bhd determines the present value of the note is RM275,000. Additional Information: 1. The company records its sales using net method. 2. The company uses allowance method to record doubtful debts. REQUIRED: Prepare the appropriate journal entries to record the above transactions for Technology Bhd. On 31 December 2020, the balance in Spring Time Berhad's accounts receivable was RM256,000 and Allowance for doubtful account (before adjustment) was RM 26,320. The information on the age of receivables is as follows: Days Account Outstanding Less than 15 days 16-30 days 31-45 days 46-60 days REQUIRED: (a) Determine the appropriate balance of allowance for doubtful account on 31 December 2020. (b) Prepare the related journal entries for bad debt expense. Amount RM96,000 RM66,000 RM59,000 RM35,000 Estimated % uncollectible 2% 10% 25% 40%

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