At the start of a year, a business has £3,000 on its provision for doubtful debts account.

By the end of the year, doubtful debts have increased to £4,200. What entries would be shown in the financial summaries?

a. Expenses include £7,200 and receivables are reduced by £7,200

b. Expenses include £4,200 and receivables are reduced by £4,200

c. Profit is increased by £1,200 and receivables are reduced by £4,200

d. Expenses include £1,200 and receivables are reduced by £4,200