At 31 December 20X5, Blue Sky plc.'s allowance for receivables was 25,000. At 31 20X6, after considering total outstanding receivables of 520,000, the directors determined that the allowance should be 21,000. The company decided that debt totaling 7,000 were to be written off. On the other hand, during the year ended 31 December 20X6, Blue Sky plc. received 5,000 in full settlement of a debt that had previously been written off. Make journal entry for irrecoverable debts expenses. Which amount should the company reports on net receivables. The End