Molly West commenced business on 1 January 2021 and prepares her financial statements to 31 December every year. For the year ended 31 December 2021, bad debts written off amounted to

£15,510. It was also found necessary to create an allowance for doubtful debts of £2,590.

In 2022, debts amounting to £17,430 proved bad and were written off. J. Kane, whose debt of £175 was written off as bad in 2021, settled his account in full on 30 November 2022. As at 31 December 2022, total debts outstanding were £116,600. It was judged necessary to bring the allowance up to 3% of this figure on that date.

In 2023, £19,740 of debts were written off during the year, and another recovery of £202 was made in respect of an amount due from B. Azam that had been written off in 2021. As at 31 December 2023, total debts outstanding were £79,200. The allowance for doubtful debts needs to be changed to be equal to 4% of this figure.

Required:

Show, for the years 2021, 2022 and 2023, the:

(a) Allowance for doubtful debts account

(b) Bad debts recovered account

(c) Bad debts expense account

(d) Net total charge to the income statement.