1 A business which prepares its financial statements annually to 31 December suffered bad debts which were written off: 2007 £530 2008 £490 2009 £320 The business had a balance of £300 on the...

1

A business which prepares its financial statements annually to 31 December suffered bad debts

which were written off:

2007 £530

2008 £490

2009 £320

The business had a balance of £300 on the provision for doubtful debts account on 1 January 2007.

At the end of each year, the business considered which of its debtors appeared doubtful and

carried forward a provision:

2007 £600

2008 £800

2009 £700

Show the entries in the profit and loss account and prepare the provision for doubtful debts

account for each of the three years.