The statement of profit or loss
. Unfortunate Limited has trade receivables at 31 December 2021 of £400,000. This figure includes a known irrecoverable debt of £20,000. As well as the known irrecoverable debt, the directors intend to create an allowance for receivables of 6% to cover the possibility of other debts becoming irrecoverable in the future. There was no allowance for receivables at the start of the year. What is the increase in the allowance for receivables that will be charged in the statement of profit or loss for the year ended 31 December 2021?

. Losing Out Limited has trade receivables at 30 June 2022 of £550,000. This figure includes known irrecoverable debts of £25,000. The allowance for receivables at 1 July 2021, the start of the financial year, amounted to £24,000. At 30 June 2022 the directors want to set the allowance for receivables at 7% of the remaining trade receivables. What is the increase in the allowance for receivables that will be charged in the statement of profit or loss for the year ended 30 June 2022?

. At 30 September 2021, Better Times Limited has trade receivables of £310,000. Of these trade receivables, £15,000 is known to be an irrecoverable debt. The allowance for receivables at the start of the year amounted to £30,000 representing 10% of the value of trade receivables at 30 September 2020. The directors are currently more confident about the future and expect trade receivable recoverability to improve. They have therefore decided to reduce the allowance for receivables to 8% of year end trade receivables at 30 September 2021. What is the charge or credit to the statement of profit or loss in respect of the allowance for receivables for the year ended 30 September 2021?

. At 31 January 2022, Loser Limited has year-end trade receivables of £750,000. Of these trade receivables, £45,000 is known to be irrecoverable. The directors want the allowance for receivables to be 12% of year-end trade receivables. The allowance for receivables at the start of the year amounted to £60,000. What is the total charge for irrecoverable debts and the allowance for receivables to be made to the statement of profit or loss for the year ended 31 January 2022?