3. Converting accrual accounting data to cash flow data accounts receivable and doubtful debts provision account balances both decrease over a period, which one of the following combinations of ments should be made to operating profit before income tax to reconcile to cash flows from operating activities? me bad debts are written off against the doubtful debts provision lect Accounts receivable account decrease Doubtful debts provision account decrease Add Add Add Subtract Subtract Add Subtract Subtract Your response A Add Add B. Add Subtract C. Subtract | Add D. Subtract Subtract Chapter 4. Preparing the statement - direct method The following information relates to transactions which occurred during a reporting period. The opening and closing balances of creditors were $330,000 and $520,000 respectively. The opening and closing balances of inventory were $730,000 and 5970.000 respectively. Cash paid to cred was $540,000. Which combination of credit purchases and cost of sales is correct for this period? Your response A. $350,000 $110,000 B. $350,000 $290,000 C. 5730,000 $110,000 D. 5730,000 $490,000 Chapter 4. Preparing the statement direct method The following information relates to transactions which occurred during a reporting period. The opening and closing balances of creditors were $330,000 and $520,000 respectively. The opening and closing balances of inventory were $230,000 and $970,000 respectively. Cash paid to creditors was $540,000. Which combination of credit purchases and cost of sales is correct for this period? Your response: A. $350,000 $110,000 B. $350,000 $290,000 C. 5730,000 $110,000 D. 5730,000 $490,000 Mark this question for review ENKI