In 2023 Norman Pty Ltd had net credit sales of $75,000. On 1 July 2022, the Allowance for Doubtful Debts had a credit balance of $1,800. During 2023, $3,000 of uncollectable accounts receivable were written off. Ageing of accounts receivable revealed that the allowance should be 8% of the balance in receivables. If the accounts receivable balance at 30 June 2023 was $20,000, what is the required adjustment to the Allowance for Doubtful Debts at 30 June 2023?

a.

$1 600

b.

$7 500

c.

$2 800

d.

$3 000

e.

$6 000