Question

A business makes a provision of doubtful debts equal to 10% of trade receivables.
The provision at 31 March 2018 was $8300.
The trade receivables after the provision on 31 March 2019 were $ 55, 800.
What is the change in the provision over the year?

Answer 1

Answer:

55,800 -8300 the ans will be .

Answer 2

Answer:

Provision for Doubtful Debts means the expense reported on the income statement or profit and loss A/c. If Provision for Doubtful Debts is the current period expense associated with the losses from normal credit sales, it will appear as an operating expense usually as part of Selling, General and Administrative Expenses (SG&A). If a provision for doubtful debts would decrease then debit balance of profit and loss A/c would decrease and ultimately net profit would increase.

Explanation:

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