Alex Smith operates a retail business, permitting his customers one month’s credit, and maintaining an allowance for doubtful debts calculated as stated in the last column of the table shown below. An allowance for doubtful debts was reported on 1 January 2009 at £2,400. Receivables reported as outstanding for more than 61 days, as at 31 December 2009, include £4,000 which was written off in 2010, and similarly, a corresponding amount reported as at 31 December 2010 includes £1,500 written off in 2011.

Required:

Make the necessary entries in the Allowance for doubtful debts account maintained by Alex for each of the three years to December 2011.

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Age of receivables One month 30 to 45 days 46 to 60 days 61+ days As at 31.12.2009 £210,000 £45,000 £28,000 £15,000 As at 31.12.2010 £312,500 £75,000 £30,000 £20,000 As at 31.12.2011 £418,500 £64,500 £22,000 £10,000 Percentage allowance 0 3 5 10