Which of the following is the effect on net income if a business decreases its provision for bad debts?

Which of the following is the effect on net income if a business decreases its provision for bad debts? Correct Answer It will increase net income

Net income will increase is the effect on net income if a business decreases its provision for bad debts.
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A company has trade debtors at the year-end amounting to Ta. 2,18,000. One of the debtors, value TA. 8,000 is known to be uncontrollable. The company takes a 5% provision for bad debts each year and last year's provision amounted to TA. 2,000 which of the following figures will appear in the profit and loss account as the total bad debt charge for the year?
A company has trade debtors at the year-end amounting to TA. 2,18,000. One of the debtors, value TA. 8,000 is known to be noncollectable, The company takes a 5% provision for bad debts each year and last year's provision amounted to TA. 2,000. Which of the following figures will appear in the profit and loss account as the total bad debt charge for the years?
কোনো প্রকার কুঋণ সমন্বয় করার পূর্বে দেনাদারের পরিমাণ হচ্ছে ২০,৫০০ টাকা। কুঋণ ৫০০ টাকা, কুঋণ সঞ্চিতি ৫৫০ টাকা। দেনাদারের উপর ১০% কুঋণ সঞ্চিতি এবং ৫% বাট্টা সঞ্চিতি ধার্য করা হয়। বাট্টা সঞ্চিতির পরিমাণ কত? (The debtors balance appears at Tk. 20,500 prior to bad debt adjustment. Bad debt expense in Tk.500 and bad debt reserve is Tk. 550. A provision is created for bad debt is 10% and is made for a discount of 5%. What will be reserve for discount in taka?)
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