Trudy McDuff maintains a provision for doubtful debts equal to 2.5% of outstanding debtors at the end of each financial year. The following information is available:

The following bad debts have been written off during the year:

Required

Prepare the necessary general ledger accounts to record the entries. Show clearly any amounts to be entered in the profit and loss account for the year ended 30 April 20*8.

Prepare a balance sheet extract at 30 April 20*8 showing debtors and the provision for doubtful debts.

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Total debtors at 1 May 20*7 Total debtors at 30 April 20*8 34,000 44,000