A sole trader’s draft profit for the year comes to $47500. No accounting entries have been recorded for the following items. 1 By the year end, trade receivables were $5600 higher than in the previous year. However, an irrecoverable debt of $360 had still not been written off. The trader keeps a provision for doubtful debts at $5%. 2 A machine was disposed of for $4000. Its net book value was $3500. What is the correct profit for the year?
- A$46360
- B$47378
- C$47902
- D$47920