At 30 June 20X5 a companys allowance for receivables was $39,000. At 30 June 20X6 trade receivables totalled

$517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the

equivalent of 5% of the trade receivables based on past events.

What figure should appear in the income statement for the year ended 30 June 20X6 for receivables expense?

A $61,000

B $52,000

C $22,000

D $37,000