Unit 5 help please - Provision for doubtful debts

I am a bit confused with the provision for doubtful debts. Sorry for the silly question, but I would be really grateful for any advice.

At the end of the year, someone has made sales on credit of say £80k and they received £70k from these credit customers during the year. The owner then assessed his debtors and decided to make a general doubtful debt provision of 2% of his debtors. Would you say that the 2% is the 2% of the £80k or 2% of the £10k which is remaining on the debtors account?



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