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At 30 June 20X5 a company's allowance for receivables was $39,000. At 30 June 20X6 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5% of the trade receivables based on past events.
What figure should appear in the income statement for the year ended 30 June 20X6 for receivables expense?
A $61,000B $52,000C $22,000D $37,000
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