Provision for discount on debtors is calculated on the amount of debtors

Q. Provision for discount on debtors is calculated on the amount of debtors.

A.            After deducting provision for doubtful debts

B.            Before deducting provision for doubtful debts

C.            Before deducting actual debts and provision for doubtful debts

D.            After adding actual bad and doubtful debts

Answer: After deducting provision for doubtful debts