A business started trading on 1 January 19X6. During the two years ended 31 December 19X6 and 19X7 the following debts were written off to the Bad Debts Account on the dates stated:

On 31 December 19X6 there had been a total of debtors remaining of £40,500. It was decided to make a provision for doubtful debts of £550.
On 31 December 19X7 there had been a total of debtors remaining of £47,300. It was decided to make a provision for doubtful debts of £600.
You are required to show:
(i) The Bad Debts Account and the Provision for Doubtful Debts Account for each of the two years.
(ii) The relevant extracts from the Balance Sheets as at 31 December 19X6 and 19X7.

Transcribed Image Text:

31 August 19X6 W Best 85 30 September 19X6 S Avon 140 28 February 19X7 LJ Friend 180 31 August 19X7 N Kelly 60 30 November 19X7 A Oliver 250