On 30 June 2021 a companys allowance for doubtful receivables was $80,000. On 30 June 2022 gross trade receivables totalled $1,034,000. It was decided as of 30 June 2022 to write off debts totalling $74,000 and then to adjust the allowance for doubtful receivables to be 5% of the remaining gross trade receivables. This 5% allowance is based on past data. What is the amount of the doubtful debt expense that should appear in 2022s income statement for these items?

a.

$45,700

b.

$124,000

c.

$48,000

d.

$42,000