The question is an accounting question posted by student number 258612. Berry Limited is a company incorporated in Hong Kong.It has its financial year end at 31 December. It is the companys policy to

Berry limited, accounting question posted by student number 258612.Berry Limited is a company incorporated in Hong Kong.It has its financial year end at 31 December. It is the companys policy to provide 8% of the annual sales amount as provision for bad debt.Below is the trial for the year ended 31 December 2020:Bank  900,000Account receivables 700,000Provision for bad debts                                      350,000Inventory 600,000Plant, Property and equipment 1,390,000Accumulated depreciation                                  60,000Revaluations surplus                                          300,000Account Payables                                              80,000Sales                                                                1,500,000Cost of sales 400,000Wage expenses 100,000Tax expenses 20,000Other operating expenses 80,000Share capital                                                   1,000,000Retained profits at January 2020           900,000                                                 4,190,000      4,190,000