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The balance on an entity's trade receivables account is 36,000. It is company policy to...

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Accounting

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The balance on an entity's trade receivables account is 36,000. It is company policy to maintain an allowance for irrecoverable debts of 10% of trade receivable balances in addition to any specific amounts that are noted. You are told that two credit customers (Alfie who has a balance owing of 1,500 and Wilfred who has a balance owing of 2,500 ) are experiencing financial difficulties due to the recession. Given this information what will the balance on the allowance for irrecoverable debts be at the end of the year? 3,6004,0007,2007,600

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