When a provision for doubtful debts is created as a year-end adjustment, what treatment is required?

1. A Option A: Debit Profit & Loss Account and add the provision to debtors
2. B Option B: Debit Profit and Loss Account and deduct the provision from debtors
3. C Option C: Credit Profit & Loss Account and deduct the provision from debtors
4. D Option D: Credit Profit and Loss Account and add the provision to debtors

Answer checked 11 October 2026 · How we write and check questions