Balance of Account Receivable as at 31 December 2016 is RM120,000. Provision for Doubtful Debts is at 4% of net Accounts Receivable. The balance of Provision for Doubtful debts account in the Trial Balance is RM3,600. Calculate the amount of doubtful debts to be shown in Statement of Profit or Loss for year ending 31 December 2016.

Select one:

a. Decrease in Provision for Doubtful Debts RM4,800

b. Increase in Provision for Doubtful Debts RM1,200

c. Increase in Provision for Doubtful Debts RM4,800

d. Decrease in Provision for Doubtful Debts RM1,200