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【单选题】
Doggard Co is a business that sells second hand cars. If a car develops a fault within 30 days of the sale, Doggard Co will repair it free of charge.At 30 April 20X4 Doggard Co had made a provision for repairs of $2,500. At 30 April 20X5 Doggard Co calculated that the provision should be $2,000.What entry should be made for the provision in Doggard Co's statement of profit or loss for the year to 30 April 20X5?A.
A charge of $500
B.
A credit of $500
C.
A charge of $2,000
D.
Doggard Co needs to reduce the provision by $500 ie a credit to the statement of profit or loss.
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surf
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