At 1 January 2018, the provision for doubtful debts stood at $1580. Trade receivables on 31 December 2018 amounted to $44\,750. This figure included a debt of $12\,500 that was judged to be irrecoverable. The provision for doubtful debts was required to be kept at $5\%$. Which doubtful debts entry was shown in the income statement for the year ended 31 December 2018?
- A$32.50 expense
- B$32.50 income
- C$657.50 expense
- D$657.50 income