you are preparing the year end accounts for your client for bad and doubtful debts.

Included in the account receivables is an amount of RM $3,574$ which has been outstanding for just over a year. Your client has decided to write this balance off.

Provision for doubtful debts is to be made as follows:

$-6\%$ of balances which have been outstanding for between $30$ and $59$ days.

$-50\%$ of balances which have been outstanding for $60$ days or more.

At the end of the previous year the provision for doubtful debts was RM $4,516.$ The account receivables, including irrecoverable balance of RM $3,574$ have been analysed as follows :

Age of debt balance : RM

Less than $30$ days $36,591$

$30$ days to $59$ days $18,700$

$60$ days and over $9,722$

Total $65,013$

a$.$ explain the difference between a bed debt and a doubtful debt.

b$.$ Calculate :

i$.$ the total to be charged to the statement of comprehensive income for the year in respect of bad and doubtful debts.

ii$.$ the value to be reported in the statement of financial position for the accounts.