A business has given the following details: provision for doubtful debts at 1 January 2017 $\$2950$; trade receivables on 31 December 2017 $\$75000$. The provision for doubtful debts is to be kept at $5\%$ of trade receivables. Which journal entries are required on 31 December 2017?
- Aincome statement: $\$800$ credit; provision for doubtful debts account: $\$800$ debit
- Bincome statement: $\$800$ debit; provision for doubtful debts account: $\$800$ credit
- Cincome statement: $\$3750$ credit; provision for doubtful debts account: $\$3750$ debit
- Dincome statement: $\$3750$ debit; provision for doubtful debts account: $\$3750$ credit