9 Gibson’s trade debtors at 31 December 2005 amount to £75 000. One of the trade debtors has owed Gibson £5000 since 1998. Gibson thinks that the debtor now lives abroad in exile.

Should Gibson write off the £5000 as a bad debt to the profit and loss account for the year to 31 December 2005? If so, which account should be debited and which account should be credited? And what amount for trade debtors should be shown in Gibson’s balance sheet at 31 December 2005?