Multiple Choice 1 point possible (graded) At 1 June 20X4, Chen's allowance for receivables was $870. At 31 May 20X5, Chen has a receivables balance of $34,700, of which $2,500 is considered to be irrecoverable and should be written off. Chen believes that the allowance for receivables required at 31 May 20x5 is equivalent to 2% of the outstanding receivables balance. What is the overall effect of the year-end adjustments for receivables on profit or loss for the year? $2,274 decrease in profit $2,500 decrease in profit $226 increase in profit $644 increase in profit