At 30 June 2004 a company’s allowance for receivables was $39,000. At 30 June 2005 trade receivables totalled
$517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the
equivalent of 5 per cent of the trade receivables based on past events.

What figure should appear in the income statement for these items?

A    $61,000
B    $22,000
C    $24,000
D    $23,850

B