Question 1: Account receivables le accountant for James Scriven Ltd has prepared the following aged debtor analysis. As credit manager, you have to decide what bad debts to write off and then calculate the new provision for doubtful debts. debtor 3-4 month 189.2 over 4 months Peter Zandra DS Cox Softseat P Bond TF Day BG Moon Total Aged debtor analysis at 31 December 2012 Age of debt Total Less than 1 1-2 2-3 debt month month month 4199.9 2000 1800. 4 210. 3 750.43 3899.96 1450.26 2250.7 580.67 2622.14 900 1220 200.4 780 340.6 439.4 169.23 121.23 48 13002.334812.09 5758. 5 410.7 750.43 199 240 9.62 340.67 292.12 821.991199.05 The company's credit policy is: To write off as bad debts all debts over 4 months old Make a specific provision for debts over 200 and between 3 and 4 months old Make a general provision of 3% of the remaining debtors. You have also been provided with the following additional information: In 2011, a debt owed by Quality Furnishings Ltd was written of as a bad debt. On 31 March 2012 101.34 (including VAT at standard rate was received in final settlement of the debt. The provision for bad debts at 1 January 2012 was 340. 1) calculate the new provision for doubtful debts. (3 marks) 2) Using both the relevant aged debtor analysis and this additional information, prepare the following accounts: Bad debts Provision for doubtful debts . Bad debts recovered Quality Furnishings Ltd for 2012 only. (7 marks) 3) If gross profit was 192,000 and expenses 78,000 before the above adjustments, showing your workings calculate the revised net profit