On 31 December, the following information was available. The decision was made to lower the provision for doubtful debts to $800. What effects will this adjustment have on profit for the year and on net assets?
- Aprofit for the year decrease; net assets decrease
- Bprofit for the year decrease; net assets increase
- Cprofit for the year increase; net assets decrease
- Dprofit for the year increase; net assets increase