Reference no: EM132554957

Problem 1: Dunia Baru Berhad 1 January 2019 balance in the Allowance for Doubtful Accounts of RM10,000. During 2019, it wrote off RM7,200 of accounts and collected RM2,100 on accounts previously written off. The balance in Accounts Receivable was RM200,000 at 1 January and RM240,000 at 31 December. At 31 December 2019, Dunia Baru Berhad estimates that 5% of accounts receivable will prove to be uncollectible. How much is Bad Debt Expense for 2019?

Problem 2: Accounts receivable in the amount of RM250,000 were assigned to the Fast Finance Company by Marsh Bhd., as security for a loan of RM200,000. The finance company charged a 4% commission on the face amount of the loan, and the note bears interest at 9% per year.

During the first month, Marsh Bhd collected RM130,000 on assigned accounts. This amount was remitted to the finance company along with one month's interest on the note.

REQUIRED:

Make all the entries for Marsh Bhd. associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company.