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On 1st January 2010 a company’s provision for doubtful debts account was Rs. 500. On 31st December 2010 debtors were Rs. 20,000. The provision is to be maintained at 2% of the debtors. What adjustment to the provision for doubtful debts account is needed?

A. Rs. 100 debit
B. Rs. 100 credit
C. Rs. 400 debit
D. Rs. 400 credit

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