Given:
………………………….Jan.2003………Dec. 2003
Provision for bad debt……..N1000
Debtors……………………………………N20000
Bad debt to be written off…………………..N2000
………………………….Jan.2003………Dec. 2003
Provision for bad debt……..N1000
Debtors……………………………………N20000
Bad debt to be written off…………………..N2000
The provision for bad debt stands at 10% of debtors.
How much is to be charged to the profit and loss account as a provision for bad debt?
- A.
N800 - B.
N1000 - C.
N1800 - D.
N2000