QUIZ – AA015 TOPIC 7 ACCOUNTING FOR RECEIVABLE

QUIZ – AA015 TOPIC 7 ACCOUNTING FOR RECEIVABLE

 

QUESTION

On 31^st. December 2021, Semangat Sdn Bhd (SSB) reported the following information in the Statement of Financial Position.

Accounts Receivable	RM 760,000
Allowance for Doubtful Accounts	RM 80,000

During the year 2022, the company credit sales was RM 3,520,000. Sales returns and allowances was RM5,000. Total receipt from accounts receivable was RM2,760,000 which includes RM30,000 that was bad debts recovery that had been previously written off as uncollectible from Jitu Sdn. Bhd (JSB). SSB decided to write off accounts receivable deemed uncollectible debt total RM95,000. SSB estimated 3% of accounts receivable balance as uncollectible since last years.

 

REQUIRED:

 

(i) Prepare journal entries to record all transactions above.

(9 marks)

(ii) Prepare Accounts Receivable and Allowance for Doubtful Accounts.

            (8 marks)

(iii) Prepare journal entries to record bad debts expenses.

            (1.5 marks)

(iv) Calculate the net realizable value of the accounts receivable.

            (1.5 marks)

 

ANSWER

As Salam and Hi everyone... My name is Puan Asmazatul Yusfiziati Binti Mohd Yusof CA(M) or you can call me Madam Fizi. I'm an Accounting lecturer at Negeri Sembilan Matriculation College (KMNS), Kementerian Pendidikan Malaysia. This blog (www.madamfizi.com) was created to share learning materials on the subject of Accounting for Matriculation, Form 6, Foundation, Diploma, Secondary School and related students.