A business started trading on 1 January 2008. During the 2 years ended 31 December 2008 and 2009, the following debts were written off to the Bad Debts Account on the dates stated: 31 Aug 2008 W Best $85 30 Sep 2008 S Avon $140 28 Feb 2009 LJ Friend $180 30 31 Aug 2009 Nov 2009 N Kelly A Oliver $60 $250 On 31 December 2008, total receivables balance remaining after bad debts was $40,500. It was decided that an allowance for receivables of $550 be made based on past experience On 31 December 2009, total receivables balance remaining after bad debts was $47,300. It was decided that an allowance for receivables of $600 be made based on past experience Required: For each of the 2 years, show the difference in the Statement of Profit or Loss and the Statement of Financial Position Balance (as an extract), if bad debts were written off: Against profit Against allowance Given: Year ended Dec 2008: Bad debts $225, Allowance $550 Year ended Dec 2009: Bad debts $490, Allowance $600