The Allowance for Doubtful Debts Account Has a Balance at the Start

Multiple Choice

The allowance for doubtful debts account has a balance at the start of the year of $1000. At the end of the year debts of $990, including $90 GST, are to be written off and the allowance for doubtful debts is to be adjusted to 10% of the closing accounts receivable balance of $22 000 (including $2000 GST) . The amount for bad and doubtful debts appearing in the income statement for the year will be:

A) $2000.
B) $1900.
C) $2100.
D) $2200.