D Faculti started in business buying and selling law text books, on 1 January 20X3. At the end of each of the next three years, his figures for debtors, before writing off any bad debts, were as follows:

Bad debts to be written off are as follows:

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 20X3 and 20X4.

(b) The amounts due from debtors, B Roke, £70, and HA Ditt, £42 became irrecoverable in 20X6 and were written off. Prepare the ledger account entries to record these write-offs.

Transcribed Image Text:

31 December 20X3 £30,000 31 December 20X4 £38,100 31 December 20X5 £4,750