In: Accounting
Debit (RM) |
Credit (RM) |
|
Account receivable |
100,000 |
|
Allowance for impairment of Account receivable as at 1 January 2019 |
8,500 |
As at 31 December 2019, the following transactions are not yet recorded:
No of days past due |
Amount of Receivables (RM) |
Estimated percentage of uncollectible |
Not yet due |
44,000 |
2% |
1-30 days |
26,000 |
3% |
31-60 days |
22,000 |
5% |
Over 60 days |
8,000 |
10% |
Total |
100,000 |
Required:
Accounts receivable | |||
Debit | Amount | Credit | Amount |
Beg. Bal | 100,000 | Allowance for impairment of account receivable | 2,000 |
Allowance for impairment of account receivable | 1,500 | Cash | 1,500 |
Closing balance | 98,000 | ||
Total | 101,500 | Total | 101,500 |
Allowance for impairment of account receivable | |||
Debit | Amount | Credit | Amount |
Accounts receivable | 2,000 | Beg. Bal | 8,500 |
Bad debt expense | 11,560 | Accounts receivable | 1,500 |
Closing balance | 3,560 | ||
Total | 13,560 | Total | 13,560 |
Status | Amount | × allowance | Desired allowance |
Current | 44,000 | 2% | 880 |
1-30 | 26,000 | 3% | 780 |
31-60 | 22,000 | 5% | 1,100 |
Over 60 | 8,000 | 10% | 800 |
- | - | ||
100,000 | 3,560 |