At the end of the financial year on 31 December, the accounting records of a business gave the following balances. trade receivables $18 820 allowance for irrecoverable debts $760 The following adjustments are required. 1. An irrecoverable debt of $470, written off in the previous year, has now been recovered. No accounting entries for this recovery have been made in the financial statements. 2. Irrecoverable debts of $680 are to be written off. 3. The allowance for irrecoverable debts must be set at 5% of trade receivables. In the statement of profit or loss for the year ended 31 December, how should the net total of these adjustments be shown?
- A$63 expense
- B$63 income
- C$357 expense
- D$357 income