Toys Toys Toys Pty Ltd (TTT) sells custom made wooden toys. Customers are invoiced for the toys when they are shipped and are required to pay for the toys once the toys have been received and deemed satisfactory. TTT includes the invoice amount in its assessable income when the invoice is issued. As of 30 June, TTT determined that it had $5,000 in unpaid invoices. TTT’s records indicated that 90% of the invoices related to toys sold within the last month, which was considered acceptable. However, of the remaining $500, $200 related to invoices which were more than three months overdue. In accordance with its customary practice, TTT wrote off the $200 of outstanding invoices. Its standard practice is to issue payment reminders before writing off the debt. TTT also created a provision for bad debts of $300 at this time.

Advise TTT as to what amount (if any) it can deduct in relation to the unpaid invoices.