From the following data ascertain the size of the provision for doubtful debts for each year, stating the entry needed in the respective year’s statement of comprehensive income. In each case the provision should be based on 5% of outstanding debtors at the year end. The balance on the provision account as at 1 January 2005 stood at £505.

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Year 2005 2006 2007 2008 Debtors as at 31 December () 7,800 7,300 8,650 8,990