At its year end of $28$ February $20$X$6$ Stope plc has in its accounting records a figure for trade receivables of $47,533,$ and an allowance for receivables of $500$ at $28$ February $20$X$5.$

One customer, Invincible plc$,$ has experienced financial difficulties and has now gone into administration. Its balance of $10,380$ at $28$ February $20$X$6$ is deemed to be irrecoverable

and should be written off.

The directors of Stope plc also wish to increase the allowance for receivables to $850.$

What will Stope plc record in its accounting records $($Income statement and Balance Sheet$)$ as at $28$ February $20$X$6$ in respect of the above transactions?

Question $1$Select one:

a$.$

Allowance for receivables of $850($b$/$s$)$ and a charge in respect of irrecoverable debts of $10,380($i$/$s$)$

b$.$

Allowance for receivables of $1,350($b$/$s$)$ and a charge in respect of irrecoverable debts of $10,730($i$/$s$)$

c$.$

Allowance for receivables of $1,350($b$/$s$)$ and a charge in respect of irrecoverable debts of $10,380($i$/$s$)$

d$.$

Allowance for receivables of $850($b$/$s$)$ and a charge in respect of irrecoverable debts of $10,730($i$/$s$)$