Maureen Gill maintains a provision for doubtful debts equal to 5% of outstanding debtors at the end of each financial year. The following information is available:

Bad debts not yet written off at 31 December 20*8

Required

a) Prepare the necessary general ledger accounts to record the entries. Show clearly the amounts to be entered in the profit and loss account
b) Prepare a balance sheet extract showing debtors and the provision for doubtful debts.

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Total debtors 1 January 20*8 Total debtors 31 December 20*8 64,000 83,500