At 1 January 2016, a company’s trade receivables amounted to $45\,000$. By 31 December 2016, after irrecoverable debts had been written off, the trade receivables figure was $32\,800$. The company policy is to keep a provision for doubtful debts at 5%. On 1 March 2016, the company was owed $7750$ by a customer. The customer was able to pay only 40% of the debt. The rest of the amount was written off as irrecoverable. What was the net expense in the income statement for the year ended 31 December 2016 for irrecoverable and doubtful debts?
- A$3010$
- B$4040$
- C$5260$
- D$6290$