A business has an accounting year ending on 31 December. At 31 December 2007 the records contained the following accounts:

The trade debtors at 31 December 2008 were £18,900. The business decided at the end of the year to write off balances of £300 as bad debts. The trade debtors figure includes amounts of £250 owed by business C, £150 owed by business M, and £200 owed by business A, all of which are regarded as doubtful debts.
Required What is going to be the provision for doubtful debts as at 31 December 2008, given a general provision of 5 percent of trade debtors was applied? Show the T-accounts entries in respect of the above and the relevant profit and loss account and balance sheet extracts. Use the blank T-accounts provided below.

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Trade debtors 19,000 Provision for bad debts 1,000