Question: Makossa Ltd. provided 5% as provision for bad debts on Sh.7,200 balance of trade receivables after deducting bad debts in 2011. The trade receivables increased

  1. Makossa Ltd. provided 5% as provision for bad debts on Sh.7,200 balance of trade receivables after deducting bad debts in 2011. The trade receivables increased to Sh.8,400 in 2012 due to more sales and adjustment of invoices not posted. Gross profit Sh.6,300

Required:

Adjustment on provision for bad debts

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