1 D Faculti started in business buying and selling law textbooks, on 1 January 2003. At the end of each of the next three years, his figures for debtors, before writing-off any bad debts, were as...

1

D Faculti started in business buying and selling law textbooks, on 1 January 2003. At the

end of each of the next three years, his figures for debtors, before writing-off any bad debts, were

as follows:

31 December 2003 £30,000

31 December 2004 £38,100

31 December 2005 £4,750

Bad debts to be written-off are as follows:

31 December 2004 £2,100

31 December 2005 £750

The provision for doubtful debts in each year is 5% of outstanding debtors.

Required:

(a) Prepare Faculti’s bad debts expense account and provision for doubtful debts account for 2003,

2004 and 2005.

(b) The amounts due from debtors B Roke (£70) and HA Ditt (£42) became irrecoverable in 2006

and were written off. Show the entries in the ledger accounts to record these write-offs.