(a(i))[1]
State one reason a business might create a provision for doubtful debts.
(a(ii))[1]
State one accounting concept used when setting up the provision for doubtful debts.
(a(iii))[5]
Prepare the provision for doubtful debts account for the year ended 31 July 2016.
(b)[3]
Explain how a provision for doubtful debts is treated in: (i) the statement of financial position (ii) the income statement
(c)[5]
Prepare the telephone expenses account for the year ended 31 July 2016.