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Music Ltd has a total balance on their receivables account at the year end of 61,200. After reviewing their customer accounts, Music Ltd have

Music Ltd has a total balance on their receivables account at the year end of £61,200.  After reviewing their customer accounts, Music Ltd have decided to write off a debt amounting to £3,600 and create a general receivables provision of 4% of remaining receivables. There is no receivables provision brought forward.


What will be the value of the general receivables provision? What will be the irrecoverable debt expense on the P or L?

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