The Merlin Company began trading in 2017 and makes all its sales on credit. The company has suffered from a high level of bad debts and an allowance for doubtful debts of 3% of outstanding accounts receivable is made at the end of each year.

Information of Years2017 to 2019 is as follows:

Year	Trade Receivables(RM)	Bad Debts (RM)
2017	440,000	80,000
2018	550,000	90,000
2019	470,000

An account receivable, J.Sofiah, whose debt of RM4,000 was written off as badin 2017, settled her account in full on 30 November 2019. The company's financial year ended 31 December each year.

Required:

Show extracts from the following accounts for each of the years:

Bad debts                                                                                                  

1. Allowances for doubtful debts                                                                  
2. 
   
4. Bad debts recovered                                                                                   
5. 
   
7. Income Statement (extract)
8. 
   
10. Balance Sheet (extract) 

Answer rating: 100% (QA)

2 Profit and Loss Account Extract for year ended 31 Dec 2017 RM Particulars 80000 13200 Particulars ... View the full answer