Try to fill the spaces for the next four years:

To summarise:
■ The amount needed to increase the provision for doubtful debts is entered as an expense on the profit and loss account.
■ The amount needed to decrease the provision for doubtful debts is entered as an ‘income’ on the profit and loss account.

Transcribed Image Text:

End of year 6 7 00 8 9 Debtors outstanding £ 23,000 27,000 25,000 26,000 Provision Profit and loss account entry £ Balance sheet detail £