A trader recorded the following closing trade receivables. Year 1: $64\,000 Year 2: $80\,000 Year 3: $90\,000 He normally makes a provision for doubtful debts at the rate of $5\%$. At the end of year 2, he failed to update the provision. What was the effect on profit in year 3 of failing to update the provision in year 2?
- A$800 decrease
- B$800 increase
- C$1300 decrease
- D$1300 increase