Question 3 The following information relates to Lucy Ling's Accounts Receivable: (1) The Financial position at 31 January 2010 included the following entry: Accounts Receivable 40,500 Less Allowances for doubtful debts 1,215 39,285 (2) The Accounts Receivable's figures before the deduction of provision for doubtful debts were: At 31 January 2011 44,400 At 31 January 2012 39,150 (3) The bad debts figures were: For the year ended 31 January 2011 1,800 For the year ended 31 January 2012 2,100 The bad debts had been written off throughout the year. (4) At the end of financial years 2011 and 2012, Lucy Ling made provision for doubtful debts of 4% of her accounts receivable. REQUIRED (a) Prepare the following accounts for the year's ended 31 January 2011 and 31 January 2012: (1) Bad Debts (4 marks) (ii) Provision for Doubtful Debts. (9 marks) (b) Prepare the entries for Lucy Ling's debtors in her Financial position as at 31 January 2012. (6 marks) (c) State two reasons why a provision for doubtful debts is made at the financial year end. (6 marks) (Total 25 marks)