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 provision for doubtful debts to be charged to the Profit and Loss Account is
-
Le 2,500
- Le 2,475
- Le 2,450
- Le 1,000