Trade receivables at 31/12/19 were €60,000. The company follows a policy of 10% provision for bad and doubtful debts on the year-end trade receivables balance after adjustments. Credit sales for the year ended 31/12/20 were €180,000 and bank cheques received from trade debtors were €150,000. A customer owing €4,000 to the business declared bankruptcy during the year.

REQUIRED

1. Prepare the following T accounts (ledger accounts) for 2020:
   1. Trade receivables account (6 marks)
   2. Provision for doubtful debts account (6 marks)
2. Show the amounts that will appear on the Income Statement for the year ended 31/12/20 for:
   1. General provision for bad and doubtful debts and
   2. Specific provision for bad debts. (4 marks)
3. Show the amount of Trade Receivables as it will appear on the Balance sheet as at 31/12/20