Please explain the question to me....

Question 3 On 31 March 2012, the end of Flint Traders' financial year the trade debtors amounted to R20 Answer saved 800. A debtor owing R800 is bankrupt and should be written off as irrecoverable. Flint Traders' Marked out of policy is to set aside 5% of net debtors as allowance for credit losses. How much is the 1.00 allowance for credit losses? Flag question Select one: O a. R800 O b. R1 040 O c. R1 800 O d. R1 000