A business has made a gross profit of 126,734 and a net profit of 64,211. Debtors amount
Question:
A business has made a gross profit of £126,734 and a net profit of £64,211.
Debtors amount to £32,967 before bad debts of £467 have been written off.
A provision for doubtful debts of 4% is required.
Required
Select the correct answer:
The provision for doubtful debts is calculated as 4% of:
A. £32,500
B. £32,967
C. £64,211
D. £126,734
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