Soft Touch (ST) sells baby clothes and has a year-end of 31 December. The following information appeared in the pre-adjustment trial balance on 31 December 2020: Debit Credit Trade receivables 46 740 On 12 November 2020, Mr. Mkhize purchased baby clothes on credit from St. The total cost of the purchased clothes, to ST, amounted to R5 320. ST applies a consistent mark-up on selling price of 20%. On 31 December 2020, the business received a letter from Mr. Mkhize's lawyer indicating that he had been declared insolvent and that ST would receive 20c for every Randowed by Mr. Mkhize. The bookkeeper did not record this transaction. The accountant reliably estimated that 2.5% of the year-end trade receivables balance will not be received. At 31 December 2020, which of the following journal entries would correctly process the above information? . DR Bad debts expense (P/L) 6356 CR Allowance for doubtful debts (-A) 6356 . DR 6356 CR CR Bad debts expense (P/L) Trade receivables (A) Allowance for doubtful debts (-A 5 320 1036 OC DR 5320 CR Bad debts expense (P/L) Trade receivables (A) Allowance for doubtful debt (-A) 4 284 4 1036 CR D. DR 5320 5 Bad debts expense (P/L) Trade receivables (A) CR 5320 OE DR 6489 CR Bad debts expense P/L) Trade Receivables (A) Allowance for doubtful debts (-A) 5320 1 169 CR