You are preparing the year end financials for a client who buys and sells industrial machinery. You are dealing with bad debts. Bad and doubtful debts Included in the receivables balance is an amount of $3,574 which has been outstanding for just over a year. Your client has decided to write this balance off. Allowance for doubtful debts is to be made as follows: 6% of balances which have been outstanding for between 30 and 59 days; 50% of balances which have been outstanding for 60 days or more. At the end of the previous year the allowance for doubtful debts was $4,516. The 60 days and over receivables balance, included the bad debt balance of $3,574, The receivables balances have been analysed as follows: Age of debt Balance $ Less than 30 days 36 591 30 days to 59 days 18 700 60 days and over 9 722 Total receivables 65 013 What is the allowance for receivables expense for the year that would appear on the income statement