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 trade receivables are reduced by £7,200

(b) Expenses include £4,200 and trade receivables are reduced by £4,200

(c) Profit is increased by £1,200 and trade receivables are reduced by £4,200

(d) Expenses include £1,200 and trade receivables are reduced by £4,200