On 31 December 2019, Ali’s trade receivables amounted to $26500. He was aware that $400 of this total would be irrecoverable. He wanted the provision for doubtful debts to be $5\%$ of the trade receivables. On 1 January 2019, the balance in the provision for doubtful debts was $1200. What entry is made by Ali in the provision for doubtful debts account at 31 December 2019?
- A$105 credit
- B$105 debit
- C$125 credit
- D$125 debit