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You are the accountant of Big Boss Trading. From your experience, you noted that there were always some customers that have failed to settle their debts in the past. Therefore, you have proposed to provide an allowance of doubtful debts of 3% on the total trade receivables amount of RM1.5 mil. Your boss has strong objected to this proposal. How would you advise him?.

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You are the accountant of Big Boss Trading. From your experience, you noted that there were always some customers that have failed to settle their debts in the past. Therefore, you have proposed to provide an allowance of doubtful debts of 3% on the total trade receivables amount of RM1.5 mil. Your boss has strong objected to this proposal. How would you advise him?

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  • 1. You are the accountant of Big Boss Trading. From your experience, you noted that there were always some customers that have failed to settle their debts in the past. Therefore, you have proposed to provide an allowance of doubtful debts of 3% on the total trade receivables amount of RM1.5 mil. Your boss has strong objected to this proposal. How would you advise him?