Calculate the effect on each year profit

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The following table contains balances extracted from the trial balance at the year ended 31 December:

                                                 2007                     2008                   2009                  2010

                                                      £                             £                           £                      £

Bad debts                              1,150                 1,430                 960              635

Provision for doubtful debts            600                     720                840           470

Bad debts recovered                      0                         95                    170           300

Question 1: Calculate the effect on each year's profit from the above. The provision for doubtful debts stood at £425 as at 31 December 2006

Reference no: EM132595198

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