The Partex company began trading in 2008, and all sales are made to customers on credit. The company is in a sector that suffers from a high level of bad debts, and a provision for doubtful debts of 4% of outstanding accounts receivable is made at each year's end. Information relating to 2008, 2009, and 2010 is as follows:

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2008 Year to 31 December 2009 2010 94,000 5,000 4,000 Outstanding accounts receivable at 31 December* Bad debts to be written off during year *before bad debts have been written off 88,000 110,000 4,000