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Problem - A trial balance as at 30 September, before making year-end adjustments are as follows:
Provision for doubtful debts RM1,160 (Cr.)
Trade receivables RM35,600 (Dr.)
At 30 September, it was decided to write-off a bad debt of RM1,600 and to make a provision for doubtful debts equal to 1% of trade receivables.
What is the total expense in the Statement of Comprehensive Income for bad debts and provision for doubtful debts for the year ended 30 September?
a. RM1,940
b. RM340
c. RM780
d. RM820
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