What are the irrecoverable debt expenses for the year

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Problem - In the year ended 30 September 20X8. Fauntleroy had sales of $7,000,000. Yearend receivables amounted to 5% of annual sales. Fauntleroy wishes to maintain the allowance for receivables at 4% receivables and as a result discovers that the allowance is 20% higher than at the previous year end. During the year irrecoverable debts amounting to $3,200 were written off and debts amounting to $450 and previously written off were recovered. What are the irrecoverable debt expenses for the year?

a) $5,083

b) $5,550

c) $5,583

d) 16,750

Reference no: EM132865147

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