Shayni’s financial year ends on 31 May. She maintains a provision for doubtful debts at 4% of the trade receivables at the end of each financial year. On 1 June 20–2 Shayni’s provision was $480. On 31 May 20–3 her trade receivables amounted to $10,800.

Which journal entry would Shayni make on 31 May 20–3?

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Debit Credit A Income statement 48 Provision for doubtful debts 48 B Income statement 432 Provision for doubtful debts 432 C Provision for doubtful debts 48 Income statement 48 D Provision for doubtful debts 432 Income statement 432 %24