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1.Business management identifies that the longer an accounts receivable remains outstanding, the less likely the business will collect the receivable from the customer. Identify a method/approach that is appropriate for accounting for uncollectible receivables in this case and describe the method/approach including why it is appropriate (when describing, please describe how bad debt expenses are recorded using the method/approach, and/or provide an example of the journal entry required). Identify and describe the method/approaches that are less appropriate for accounting for uncollectible receivables in this case (when describing, please describe how bad debt expenses are recorded using the method/approaches, and/or provide examples of the journal entries required). (8 marks)

Clearly label each part of your answer as follows:
Appropriate method and approach is..........
Less appropriate methods and approaches are.........

2.The following information is taken from the records of WeBs Sdn Bhd. The company uses the perpetual inventory system. Date Description Units Unit Cost (RM) Dect Opening inventory 100 1 Dec 5 Sale 80 Dec 6 Purchase 200 Dec 12 Purchase 125 2. 3 Dec 13 Sale 300 Purchase 350 2 Dec 19 Dec 29 Dec 30 Purchase 150 1 Sale 400 Required: (a) Calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: (0) FIFO (m) Weighted average [11 mark] BBM 205/03 (b) Assume each unit was sold for RM5. Complete the following partial income statements : (4 marks] FIFO Weightage Average Sales Less: Cost of Sales Gross Profit