Given:
........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 profit and loss account as provision for bad debt?
N800
N1000
N1800
N2000
Correct answer is D
No explanation has been provided for this answer.