Marie starts business on 1 January and makes total sales of £800,000 during the year to 31 December. However, this turnover includes a sale of £40,000 to Mr L Lucan, who has disappeared without trace and has not paid for his goods.

Marie's business has total receivables of £170,000 at 31 December.

No adjustments yet have been made as a result of the disappearance of Mr Lucan.

How should this information be reflected in the final accounts of Marie’s business for the year ended 31 December?

(a) Sales £760,000; Receivables £170,000

(b) Sales £760,000; Receivables £130,000

(c) Sales £800,000; Receivables £170,000

(d) Sales £800,000; Receivables £130,000