Accounts receivable at the end of the month is Tk 80,000. Bad debts are expected to be 5% of accounts receivable. If Allowance for Doubtful Accounts has a credit balance of Tk 1,000 before adjustment, what is the balance after adjustment?

Tk 2,000
Tk 3,000
Tk 4,000
Tk 5,000
None of these

সঠিক উত্তর: Tk 4,000

Please compute the ledger of allowance for bad debt.Existing balance                       1000 crAdd: new  (4000-1000)            3000  crTotal                                            4000
Bissoy MCQ

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Which accounting concept dictates the inclusion of 'provision for doubtful debts' in the financial statements?

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