Highfield Manufacturing Limited provided the following information.
On 1 March 2013 the balance on the provision for doubtful debts account was $2966.
On 28 February 2014 trade receivables totalled $76 200.
This total includes an amount of $1100 due from a debtor who has gone bankrupt and which will
not be recovered.
During the year $200 was received as part settlement of a debt of $400 which had been written
off 18 months earlier.
The provision for doubtful debts is maintained at 5%.
REQUIRED
Prepare the following ledger accounts for the year ended 28 February 2014. Show the
transfers to the income statement. Bring down any balances remaining on 1 March 2014.
Highfield Manufacturing Limited
Bad debts account
Bad debts recovered account
Provision for doubtful debts account