account
Lina prepares account to 30 September each year. On 30 September 2018, she decided to establish an allowance for doubtful debts equal to 1% of debtors and to maintain the estimation of doubtful debts at 1% debtors in future accounting years. Her debtors and bad debts can be summarized as follows:
Debtors at year-end (before writing off bad debts) Bad debts to be written off
30 Sept 2018 RM22,400 RM 1,300
30 Sept 2019 RM21,700 RM 800
30 Sept 2020 RM15,000 RM 50
You are required to:
(i) Make the necessary book-keeping entries into ledger account to record Lina’s bad debts and her provision for doubtful debts
(ii) Shows the relevant extracts from income statement for the year ended 30 Sept 2018, 2019 and 2020, and the Balance Sheet as at those dates
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need B and C. If possible, can you give a detail solution. Thank
you.
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