Imran keeps a provision for doubtful debts equal to $5\%$ of trade receivables at each financial year-end. The opening balance on his provision for doubtful debts account on 1 January 2022 was $700. Trade receivables on 31 December 2022 were $2000 higher than the amount owed on 31 December 2021. What effect did the alteration in the provision for doubtful debts have on the profit for the year ended 31 December 2022?
- A$100 decrease
- B$100 increase
- C$800 decrease
- D$800 increase