B9.3 At the end of Year 3 the Bed Company has a statement of financial position (balance sheet)

comprising £3,000 receivables (debtors), £8,000 other assets and £11,000 ownership interest, consisting of £2,000 ownership interest at the start of the period and £9,000 profit of the period.

On the date of the financial year-end the manager of the company reviews the receivables

(debtors) list and decides that debts amounting to £450 are doubtful because the customers have not replied to repeated requests for payment.

Required

(a) Prepare an accounting equation spreadsheet to show the effect of the provision. (See Table 9.2 for an illustration.)

(b) Show the statement of financial position (balance sheet) information. (See Table 9.3 for an illustration.)