28. C3. Cinta Enterprise Qasih Sdn Bhd has the following balances on 1 January 2

Question

28. C3. Cinta Enterprise Qasih Sdn Bhd has the following balances on 1 January 2016 Accounts receivable RM12,500(Debit) Allowance for doubtful debts RM400 (Credit) For the year ended 31 December 2016, the following information were obtained Total sales RM100,000 (including cash sales RM30,000) Payment by debtors RM52,500 Return by debtors RM3,000 Bad debts RM1,000 It is the business policy to provide 2% allowance for doubtful debts on the outstanding accounts receivable at the end of the year What is the amount of sales to be included in the accounts receivable account? Question 16 Not yet answered Marked out of 1.00 P Flag question Select one O a. RM 100,000 O b. RM85,000 O c. RM75,000 O d. RM70,000

Explanation / Answer

Answer:

Option D i.e. RM70,000.

The Accounts Receivable account will be debited by the amount of Credit Sales.

Total Sales = RM100,000
Cash Sales = RM30,000
Credit Sales = RM100,000 – RM30,000
Credit Sales = RM70,000.

Therefore, the Accounts Receivable account will include the sale amount of RM70,000.

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