7.5 At 31 December 20X0 the following balances were shown in the books of E. Rider Ltd:

£

Sales control account 156,937 (Dr.)

Provision for doubtful debts 2,600 (Cr.)

Bad debts 750 (Dr.)

The list of debtors contained balances that were considered to be bad or doubtful as indicated in the ‘remarks’ column of the schedule below:

Schedule of bad and doubtful debts, 31 December 20X0 Account Account Customer number balance Remarks B. Clyde C6 £560 Irrecoverable S. Wars W2 £680 In liquidation. At least 50p in the £ is anticipated, but full recovery is a possibility M. Poppins P4 £227 Irrecoverable M. Express E9 £390 This debt is doubtful to the extent of 20%

M. Ash A1 £240 A provision of £80 is to be made against this debt The general provision for doubtful debts in respect of debts other than those dealt with individually above is to be raised to £3,750.

(a) Prepare the sales ledger control account, bad debts account, doubtful debts account and provision for doubtful debts account as they appear after recording the above transactions.

(b) Show the balance sheet extract for debtors at 31 December 20X0.