Debtors Account Reconstruction calculates sales and collections when complete records are not available. Formula: Opening Balance + Sales - Collections - Bad Debts - Discount Allowed = Closing Balance. Rearrange to solve: Sales = Closing Debtors - Opening Debtors + Collections + Bad Debts + Discount Allowed. Calculation Steps: 1) Note opening debtors from Statement of Affairs, 2) Identify all customer collections from cash book/bank statement, 3) Note any bad debts written off during year, 4) Identify discounts allowed to customers, 5) Determine closing debtors from year-end Statement of Affairs. Example: Opening £100 + Sales X - Collections £800 - Bad Debts £20 - Discount £10 = Closing £90. Solve: X = 90 - 100 + 800 + 20 + 10 = £820 Sales. Journal Entry: Debit Debtors Account, Credit Sales Account for calculated sales. Special Considerations: Some receivables may be written off as bad debts; these reduce debtors, Discounts are allowances given to customers for early payment, Collections may include partial recovery of written-off debts, Interest on overdue accounts may increase debtors. Documentation: Maintain aging of debtors, Track collections and bad debts separately, Note discount allowances, Identify customers who are doubtful. Exam tip: Master the debtors reconstruction formula; practice rearranging to solve for unknown sales; handle bad debts and discounts correctly; understand how collections affect debtors balance.