Use the following information to answer the question below

Provision for doubtful debts ————————1,000Cr
Bad debts ———————————————- 500Dr
Debtors ————————————————- 50,000Dr
Additional bad debts to be written off ———– 500
New provision for doubtful debts to stand at 5% of debtors

A. Le 2,500
B. Le 2,475
C. Le 2,450
D. Le 1,000

Correct Answer:

Option A = Le 2,500

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