Beena maintains a provision for doubtful debts of 3% of the trade receivables at the end of each financial year. On 1 September 2019 the provision for doubtful debts was $900. On 31 August 2020 the trade receivables amounted to $42 800. Which journal entry did Beena make on 31 August 2020? debit $ | credit $ --- | --- income statement 384 | provision for doubtful debts | 384 income statement 1284 | provision for doubtful debts | 1284 provision for doubtful debts 384 | income statement | 384 provision for doubtful debts 1284 | income statement | 1284
✓ Correct answer
A: income statement 384 | provision for doubtful debts 384
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