Bad Debt Q6

Q.
A business started trading on 01 January, 2009. During the two years ended 31 December 2009 and 2010, the following debts were written off to the Bad Debts Account on the dates stated:-

Date ----------- Debtor -------------RM

31 May 2009 --Alisya --------------175
31 Oct 2009 ---Lisa ----------------230
31 Jan 2010 ---Raymond ----------190
30 Jun 2010 ----Edward ------------75
31 Oct 2010 ----Amri --------------339

On 31 December 2009 there had been a total of debtors remaining of RM52,400. It was decided to make a provision for doubtful debts of RM640.

On 31 December 2010, there had been a total of debts remaining at RM58,600. It was decided to make a provision for doubtful debts of RM710.

Prepare:

a) Prepare the Bad Debts Accounts and the Provision for Doubtful Debts Account for each of the two years (2009 and 2010).

b) The Balance Sheet as at 31 December 2009 and 2010 (extract).

(20 marks, 2011 Q6)