Which of the following statements is NOT correct? In calculating the general allowance any irrecoverable debts and specific allowanced should be deducted from trade receivables first. The balance carried down at the end of the period on the allowance for irrecoverable debts is the amount of the new allowance. Entries for specific allowances are made in the accounts of the credit customers to which they relate. Movements in the allowance for irrecoverable debts are charged or credited to the statement of profit or loss