A business keeps an allowance for irrecoverable debts equal to $5\%$ of trade receivables. By the close of the current financial year, trade receivables amounted to $8000$, which was $20\%$ lower than in the previous year. What effect will the change in the allowance for irrecoverable debts have on the profit for the current financial year?
- Adecrease by $100
- Bdecrease by $400
- Cincrease by $100
- Dincrease by $400