The trial balance at 31 December 2012 shows that revenue for the year was £173,200, which comprises cash sales of £63,750 and credit sales of £109,450. Trade receivables were £27,500. If Candlewick Ltd makes an allowance for doubtful receivables of 10%, which of the following figures is the correct amount?

1 £17,320 2 £6,375 3 £10,945 4 £2,750