Task on bad debts and provision for doubtful debts
Robin has his financial year-end on 31 January. He provides the following information:
Debtors 31 Jan 2006	12,700
Debtors 31 Jan 2007	14,500
Debtors 31 Jan 2008	16,000
700 is to be written off as a bad debt in the year ended 31 Jan 2006
200 is to be written off as a bad debt in the year ended 31 Jan 2008
Robin wishes to make a provision for doubtful debts of 2.5% of accounts receivable outstanding at each year-end.
Required:
For each year prepare:
An extract of the profit & loss account
An extract of the balance sheet

2006
Balance Sheet	Income Statement

2007
Balance Sheet	Income Statement
2008
Balance Sheet	Income Statement