The balance in the Debtors Control account at the end of the financial year was R36 000 before the following two transactions were recorded: A debtor who owed R4 000 was declared insolvent and his account must be written off. A. Smith, whose account was previously written off, settled his debt of R1 000 . How much will be reflected as "Provision for bad debts" in the statement of financial position, if the provision for bad debts is calculated at 5% of trade debtors? A. R1 800 B. R1 600 C. R1 550 D. R1 650