The trade receivables in a business owned by Peter Cuthbert were as stated on the left and bad debts written off in each year as stated. Peter consistently maintains an allowance for doubtful debts at 3% of debts outstanding.

Required: 

Identify the amount written off as bad debt in 2009 and 2010 and state the amount at which trade receivables will be reported in the Statement of financial position on the last day of each of these two years

Transcribed Image Text:

2009 £4,820 2010 £3,240