ion 6 t answered d out of 1.00 g question 32. C3. Johan Trading has the followin

Question

ion 6 t answered d out of 1.00 g question 32. C3. Johan Trading has the following balances on 1 January 2016: Account receivables RM14,000 (Debit) Allowance for doubtful debts RM600 (Credit) Given below is the information concerning its account receivables and bad debts for the year ended 31 December 20168: Total sales RM110,000 Total cash sales RM27,500 Bad debts RM2,500 Payment by debtors RM47,500 Discount allowed RM500 It is the business policy to provide 2% allowance for doubtful debts on the outstanding account receivables at the end of the year What is the ending balance of account receivables in the statement of financial position as at 31 December 2016? au BT2160 h P ash. Modelin Prices U. PDR PlIS08895 0033 Select one: a. RM139,160 b. RM47,530 c. RM45,080 O d. RM45,570 01507

Explanation / Answer

Gross accounts receivable ending=14000+(110000-27500)-2500-47500-500= $46000 Allowance required = 46000*2%=$920 Net accounts receivable balance=46000-720=$45080 Option C is correct

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