Simon Robinson began trading as a retailer on 1 January 1989. By the end of his first year of trading he had written off a total of£ 140 worth of debts as irrecoverable. On 31 December 1989 his debts were valued in the books at £2,500. He decided to create a provision for bad debts which would allow for 5% of that amount to be irrecoverable. Show the bad debts account, provision for bad debts account and relevant entries in his final accounts.

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