The provision for doubtful debts in the books of Dunson Ltd at 30 November 20X8 was 3,000.
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The provision for doubtful debts in the books of Dunson Ltd at 30 November 20X8 was £3,000. During the year ended 30 November 20X9, bad debts of
£9,000 were identified as irrecoverable and were written-off. Receivables at 30 November 20X9 were £80,000. Based on past experience, Dunson Ltd requires a provision for doubtful debts of 5 per cent.
The charge for bad debt expense in the income statement of Dunson Ltd for the year ended 30 November 20X9 should be:
(a) £9,550
(b) £10,000
(c) £12,000
(d) £13,000
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