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Question 3 Suppose that in year 2000, Syarikat Three Tops decided to provide for doubtful...

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Question 3 Suppose that in year 2000, Syarikat Three Tops decided to provide for doubtful debts. Its debtors on 31 December 2000 amounted to RM406,000. It was decided to provide for doubtful debts based on 1% of the total debtors. Required: Show the necessary ledger entries to create the provision for doubtful debts. Continuing from question 3 above, assume that in the first 3 months of year 2001, Syarikat Three Tops found that the following debtors (from 2000) could not repay the amounts owed by them to the firm: Debtors Amount Date to record the debt unrecoverable as uncollectible Mr Runaway RM800 3 January 2001 Mr Wentaway RM900 17 February 2001 Mr Notpaying RM1,000 5 March 2001 54 On 31 December 2001, Syarikat Three Tops had debtors totalling RM500,000. A provision for doubtful debts at 1% of outstanding debtors was to be provided. Required: Show the relevant ledger entries

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