Opening balance of provision for credit losses is R850.

Trade debtors at the end of the current year are R41500. Credit losses amounting to R500 are still to be written off.Provision for Credit Losses must be adjusted to 4% of the net debtors.

Required:

Taking into account the information provided above, identify the correct closingbalance for allowance for credit losses.

Select one:

a.R41 000

b.R790

c.R1640

d.R1350