Jason’s book balances on 1 July 2019 contained the following items. Trade receivables amounted to $\$64\,200$. Provision for doubtful debts stood at $\$1284$. Trade receivables on 30 June 2020 were $\$58\,500$, and $\$500$ of this amount was to be written off as irrecoverable. Jason wishes to keep his provision for doubtful debts at $2\%$ of trade receivables. What was the adjustment in the provision for doubtful debts at 30 June 2020?
- A$\$114$ decrease
- B$\$124$ decrease
- C$\$376$ increase
- D$\$386$ increase