18. The following information is available: Provision for doubtful debts at the beginning of the year- $6,250 Trade receivables at the end of the year- $93,750 1 points Provision for doubtful debt is to be maintained at 6% of trade receivables. Which effect will the provision for doubtful debts have on profit for the year in the Income Statement? A) decrease by $625 B) Decrease by $5,625 C) Increase by $5,625 D) Increase by $625 19 Car Hardware has total Assets of $75,000. What is value of Assets, if Car Hardware 1 points purchased a new equipment for $10,000 cash ? A) $10,000 B) $85,000 C) $75.000 O D) $65,000 20. At the end of the year the following were some balances in John Hope's trial balance: Cash -$5,000, Bank overdraft $3,300, Equipment $56,000, Accumulated depreciation 1 points $17, 000, Inventory $ 14,000, Accrued wage $4, 000, Rent receivable $2,000, Accounts receivable $ 5,600 and Accounts payable $ 3000. Working capital is: Auto adjust Share Edit Delete