The balance on an entity's trade receivables account is 36,000. It is company policy to maintain an allowance for irrecoverable debts of 10% of trade receivable balances in addition to any specific amounts that are noted. You are told that two credit customers (Alfie who has a balance owing of 1,500 and Wilfred who has a balance owing of 2,500 ) are experiencing financial difficulties due to the recession. Given this information what will the balance on the allowance for irrecoverable debts be at the end of the year? 3,600 E4,000 7,200 7,600