A business had always made an allowance for doubtful debts at the rate of 3 per cent of accounts receivable. On 1 January 2015 the amount for this, brought forward from the previous year, was £400. During the year to 31 December 2015 the bad debts written-off amounted to £1,200. On 31 December 2011 the accounts receivable balance was £28,000 and the usual allowance for doubtful debts is to be made.

You are to show:

(a) The Bad Debts Account for the year ended 31 December 2015.

(b) The Allowance for Doubtful Debts Account for the year.

(c) Extract from the Statement of Profit or Loss for the year.

(d) The relevant extract from the Statement of Financial Position as at 31 December 2015.