New provision for bad debts to stand at 5% of debtors. In the balance sheet, the net figures for the profit is?

Use the following to answer the given question

	N
Provision for bad debts	1,000Cr
Bad debts	500Dr
debtors	50,000Dr
Additional bad debts to be written off	500

A. N47,025
B. N46,550
C. N45,600
D. N45,500
E. N43,225

Correct Answer:

Option D – N45,500