Once a trader had finished her year-end financial statements, she realised that an adjustment to decrease the provision for doubtful debts by $100 had been omitted. What effect did this mistake have on the trader’s statement of financial position?
- Acurrent assets overstated $100; capital overstated $100
- Bcurrent assets overstated $100; capital understated $100
- Ccurrent assets understated $100; capital overstated $100
- Dcurrent assets understated $100; capital understated $100