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