A trader drew up a draft income statement that showed a profit for the year of $36\,000. A review of the books uncovered the following facts. 1. The owner’s drawings of $900 had been entered in the wages account on the debit side. 2. At the year end, the provision for doubtful debts was raised by $20. The income statement had been charged with the full provision amount of $260. 3. In the cash book, the total for the discount allowed column, $140, for one month had not been posted to the discount allowed account. What was the correct profit for the year?
- A$34\,720
- B$36\,520
- C$37\,000
- D$37\,280