Reference no: EM133074886

Question - The following transactions were completed by Adibah Fatin Bhd during the fiscal year ended December 31:

Feb. 8. Received 40% of the RM18,000 balance owed by Ahmed Co., a bankrupt business, and wrote off the remainder as uncollectable.

May 27. Reinstated the account of Jamal, which had been written off in the preceding year as uncollectible. Journalize the receipt of RM7,350 cash in full payment of Jamal's account.

Aug. 13. Wrote off the RM6,400 balance owed by Yasmeen Co., which has no assets.

Oct. 31 Reinstated the account of Nur Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of RM3,880 cash in full payment of the account.

Dec. 31. Wrote off the following accounts as uncollectible (compound entry): A Co., RM7,190; B Co., RM5,500, C Co., RM9,400; D Co., RM1,110.

Dec 31. Based on an analysis of the RM1,785,000 of account receivable, it was estimated that RM35,700 will be uncollectable. Journalize the adjusting entry.

Required -

a) Record the January 1 credit balance of RM26,000 in a ledger account for allowance for Bad Debt Accounts.

b) Journalize the transactions. Post each entry that affects the following selected ledger accounts and determine the new balances:

Allowance for Bad Debt Accounts

Bad debt expense

c) Determine the expected net realizable value of the accounts receivables as of December 31.