Clayton Conglomerates had trade receivables of £870,000 outstanding at the end of the accounting year to 31 March 2008. The chief accountant believed that £40,000 of those trade receivables were irrecoverable and that a further £60,000 were doubtful of being recoverable. In the subsequent year, it was found that an over-pessimistic estimate of those trade receivables considered doubtful had been made and that only a further £45,000 of trade receivables had actually proved to be bad.

Show the relevant extracts in the income statement for both 2008 and 2009 to report the bad debts written off and the allowances for trade receivables. Also show the relevant statement of financial position extract as at 31 March 2008.