During 1991, Simon Robinson's third year of trading, he wrote off debts to the value of £130 and on 8 June recovered one debt of £30 which he had written off in 1990. At the end of 1991 his debtors amounted to

£1,600 and he decided to retain a provision of 5% of outstanding debtors to allow for bad debts. Show his accounts as they would appear using method 1 and method 2. Remember, he started 1991 with a provision balance of £75.

LO.1