Net loss will now be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Net loss will now be:
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Step 1
A reduction in provision for doubtful debts is an income to the business.Therefore, it is deducted from the net loss ( added to net profit- vice versa). In this case, it is net loss, so the amount of $150 must be deducted from the net loss of $2,350. Now the amount of net loss is $2,200 ($2,350-$150).
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