BAD DEBTS, BAD DEBTS RECOVERED & PROVISION FOR DOUBTFUL DEBTS

WEI'S FINANCIAL YEAR ENDS ON 31 DECEMBER. THE FOLLOWING INFORMATION IS AVAILABLE FOR THE LAST 3 YEARS OF TRADING (RM = Malaysian Ringgit = currency for Malaysia):


TOTAL OF DEBTORS BEFORE WRITING OFF BAD DEBTS
2006 YEAR - RM 400,500
2007 YEAR - RM 427,000
2008 YEAR - RM 416,000

BAD DEBTS WRITTEN OFF AT YEAR END
2006 YEAR - RM 18,500
2007 - RM 25,500
2008 - RM 19,000

SPECIFIC PROVISION FOR DOUBTFUL DEBTS
2006 - RM 20,000
2007 - RM 25,000
2008 - RM 15,000

PROVISION FOR DOUBTFUL DEBTS, AS A PERCENTAGE OF DEBTORS
2006-4%
2007-2%
2008-5%

a)PREPARE THE PROVISION FOR DOUBTFUL DEBTS ACCOUNT FOR EACH OF THE YEAR ENDING 31 DECEMBER 2006, 2007 AND 2008. THE BALANCE OF THIS ACCOUNT AT 1 JANUARY 2006 WAS RM 26,000. ALL WORKINGS MUST BE CLEARLY SHOWN.

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