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Question - A trial balance shows the following: Provision for doubtful debts RM1,200 (Cr.)
Trade receivables RM28,000 (Dr.)
During the year, RM2,000 of the trade receivables are irrecoverable and written off. The owner of the business wishes to make the provision for doubtful debts equal to 5% of the outstanding trade receivables. What is the amount to be debited to the Statement of Comprehensive Income for provision for doubtful debts?
a. RM1,400
b. RM100
c. nil
d. RM1,300
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