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Use the following to answer the given question

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Use the following to answer the given question


NProvision for bad debts1,000CrBad debts500Drdebtors50,000DrAdditional bad debts to be written off500


New provision for bad debts to stand at 5% of debtors. The total amount of bad debts to be charges as expense in the profit and Loss Account is

A.

N2,500

B.

N2,000

C.

N1,500

D.

N1,200

E.

N1,000

Correct answer is E

No explanation has been provided for this answer.