Balances on 28 February 2021 are given below

Balance sheet section

Vehicles at cost R 90 000

Equipment at cost R 50 000

Inventory R 100 000

Provision for bad debts R 2000

Nominal accounts section

Bad debts R 500

Telephone R 1500

Adjustment

Emma Jacobs was declared insolvent. Her estate will pay 20% 0f every rand she owes us. She owed us R 1700, the rest must be written off.

Calculate Bad debts at the end of the year.