A business which prepares its financial statements annually to 31 December suffered bad debts which were written-off:
2014 £ 810
2015 £ 630
2016 £1,070
The business had a balance of £790 on the Allowance for Doubtful Debts Account on 1 January 2014. At the end of each year, the business considered which of its debtors appeared doubtful and carried forward an allowance of:
2014 £ 900
2015 £1,100
2016 £ 700
Show each of the entries in the statements of profit or loss and prepare the Allowance for Doubtful Debts Account for each of the three years.