A company’s financial year finishes on 31 March. Trade receivables were $45\,000$ on 31 March 2021 and $41\,000$ on 31 March 2022. A bad debt of $1000$ has still not been written off at 31 March 2022. The provision for doubtful debts is to stay at $5\%$. What is the impact of the irrecoverable debt and the change to the provision for doubtful debts on the profit for the year ended 31 March 2022?
- Adecrease $750
- Bdecrease $800
- Cdecrease $1200
- Ddecrease $1250