We have an accounts receivable on the client Bad Risk of 500. In year N-1 an impairment loss of 1.500 has been recognized for this receivable On 31/12/N we estimate that we risk not receiving 30%of the receivable Indicate the correct answer (one only).

In N this situation decreases profit by 1500 and has no impact on cash.

In N this situation increases cash and decreases profits by2000.

In N this situation decreases profits by 2000 and has no impact on cash.

In N this situation has no impact on profits and cash.