You are presented with the following information for the year to 31 March 2004:

£

Trade debtors at 1 April 2003 20000 Trade debtors at 31 March 2004 (including £3000 of specific bad debts) 33000 Provision for bad and doubtful debts at 1 April 2003 1000 Note: A provision for bad and doubtful debts is maintained equivalent to 5 per cent of the trade debtors as at the end of the year.

Required:

(a) Calculate the increase required in the bad and doubtful debts provision account for the year to 31 March 2004; and

(b) show how both the trade debtors and the provision for bad and doubtful debts account would be featured in the balance sheet at 31 March 2004.