At 1 July 2003 a limited liability company had an allowance for doubtful debts of $83,000.

During the year ended 30 June 2004 debts totalling $146,000 were written off. At 30 June 2004 it was decided
that a doubtful debt allowance of $218,000 was required.

What figure should appear in the company’s income statement for the year ended 30 June 2004 for bad and
doubtful debts?

A       $155,000
B       $364,000
C       $281,000
D       $11,000

C

146,000 + 218,000 – 83,000