The information below is given. Opening provision for doubtful debts: $6\,250$ Closing trade receivables: $93\,750$ The provision for doubtful debts must be kept at $6\%$ of trade receivables. What effect will the provision for doubtful debts have on profit for the year in the income statement?
- Adecrease by $625$
- Bdecrease by $5\,625$
- Cincrease by $625$
- Dincrease by $5\,625$