Hey guys! I need a bit of help in Accounting. I am trying to solve this account but I’m getting a mistake in calculating Provision for Doubtful debts. I’ll just extract the details necessary:
Trade Debtors 19800
Provision for Doubtful debts: 800
Further information:
Trade Debtors includes debts totaling $1700 which are known to be bad.
The provision for Doubtful Debts is to be adjusted to include a specific provision for $3100 and a general provision of 5%.
That’s the information i extracted from the trial balance and the information given. I have to make a profit and loss account and a balance sheet. There fore I need to know the provision for doubtful debts to debit in the profit and loss accounts. Can you please help me know what the figure is because i’m gettin a different value given in the answer key. Thank you!
The answer in the answer key is $2850 (Don’t know how 
)
Other info is about accrued expenses, rent prepaid, and Depreciation… I don’t think this will affect the provision figure will it?
And another detail is that
Sales include goods sent on sale or return to a customer who has not yet indicated acceptance of the goods. The goods cost $3000 and the customer has been invoiced for $4000…will that help?