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At year - end, the balance of debtors control amounted to R 3 2 5 0 0 0 and the balance of the allowance for

At year-end, the balance of debtors control amounted to R325000 and the balance of the allowance for credit losses amounted to R2500. The allowance must be adjusted to 2% of outstanding debtors. What should the new balance for the allowance for credit losses be?

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