A D. Faculti started in business buying and selling law textbooks, on 1 January 2012. At the end of each of the next three years, his figures for accounts receivable, before writing-off any bad debts, were as follows:

Bad debts to be written-off are as follows:

The allowance for doubtful debts in each year is 5 per cent of accounts receivable. Required:

(a) Prepare Faculti’s bad debts expense account and allowance for doubtful debts account for 2012, 2013 and 2014.

(b) The amounts due from B. Roke (£70) and H. A. Ditt (£42) became irrecoverable in 2012 and were written-off. Show the entries in the ledger accounts to record these write-offs.

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31 December 2012 30,000 31 December 2013 38,100 31 December 2014 4,750