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

The net figure for debtors in the balance sheet is

  • A Le 47,025
  • B Le 46,550
  • C Le 45,600
  • D Le 45,500

The correct answer is D. Le 45,500

No explanation given
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