Record the transactions of question B9.4 in ledger accounts for L1 Receivables (debtors), L2 Provision for doubtful debts, L3 Cash and L4 Profit and loss account.

Data from B9.4

The Bed Company continues trading during Year 4. The statement of financial position (balance sheet) at the end of Year 4, in its first draft, showed receivables (debtors) as £4,850 and the provision for doubtful debts unchanged from Year 3 at £450. Enquiry showed that during Year 4 some of the receivables (debtors) at the end of Year 3 had been confirmed as bad. They amounted to £250 but nothing had yet been recorded. The management wish to make the provision £550 at the end of Year 4. Other assets amount to £12,000, ownership interest at the start of Year 4 is £10,550 and the profit is £5,750.

 
Required
Prepare an accounting equation spreadsheet to show the effect of the bad debt being
recognized and of the decision to make a provision at the end of Year 4. (See Table 9.4 for an illustration.)