On 20 September 20-7, Brian Fox's debtors totalled £12,000. He decided to write off the following as bad debts:

He further decided to make a provision for doubtful debts of 10 per cent on the remaining debtors. On 30 September 20-8 his debtors totalled £10,000 when Brian Fox decided to maintain the provision at 10 per cent. You are required to show for each of the years ended 30 September 20-7 and 20-8:

(a) provision for doubtful debts account:

(b) the appropriate entries in the profit and loss account:

(c) the necessary balance sheet entries.

Transcribed Image Text:

CH G. Green H. Wilson 60 80