On 1 January 2019, SST Trading has a debit balance of RM 55000 in Trade Receivable and
Question:
On 1 January 2019, SST Trading has a debit balance of RM 55000 in Trade Receivable and a credit balance of Rm 750 in the Provision for Doubtful Debts. On 1 July 2019, one of SST’s customers Bernard went bankrupt. Bernard owes SST 12500 and there is no hope for recovering this amount. On 1 October 2019, SST collected RM18000 payment from the outstanding trade receivables. SST Trading had a financial year ends on 31 December every year while the provision for doubtful debt recognised at 3% per year.
A) Bad debts account for the year ending 31 December 2019. (2 marks)
B) Provision for doubtful debts account for the year ending 31 December 2019 (4 marks)
C) Extract of Statement of profit or loss for the year ended 31 December 2019.(2 marks)
D) Extract of Statement of financial position as at 31 December 2019. ( 4 marks)
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen