At 30 April 2009 XD Ltd’s provision for bad debts was £26,000. At 30 April 2010 its trade receivables were £630,000. It was decided to write-off irrecoverable debts of £39,000 and adjust the provision for bad debts to the equivalent of 8 per cent of trade receivables on the basis of past events.

What is the total figure for bad debt expense that should appear in the income statement of XD Ltd for the year ended 30 April 2010?

(a) £86,280

(b) £63,400

(c) £60,280

(d) £89,400