2 points Company XYZ had a closing receivables account of $45,000. At the end of the financial year bad debts of $5,000 were written off. How is this recorded in the final accounts? sales are reduced by $5,000 and receivables stay the same This has no effect on the accounts A bad debts expense of $5,000 and receivables reduces to $40,000 A bad debts expense of $5,000 and receivables stay the same Previous