Trade debt as at 30 June 2011 amounted to 418,400. Allowance for doubtful debts brought forward as

Question:

Trade debt as at 30 June 2011 amounted to £418,400. Allowance for doubtful debts brought forward as at 1 July 2010 was £18,800. The proprietor wishes a debt of £3,400 to be written off and the Allowance adjusted to cover 5% of debts receivable as at 30 June 2011. Calculate the expenditure for the year.