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\(\begin{array}{c|c} \text{1/1/06 Debtors} & ...

Use the following information to answer the given question


1/1/06 DebtorsD2,6001/1/06 Provision for bad debtsD6031/12/06 New provision provision for bad debts5% on debtors
The provision for bad debts in the profit and loss account is

 

A.

D187

B.

D127

C.

D67

D.

D70

Correct answer is D

5% x 2600

5100 x 2600 = 130

130 - 60 = 70