Dolly's Year End Trade Receivables at 31 August 20X9 Totaled

Multiple Choice

Dolly's year end trade receivables at 31 August 20X9 totaled £38 470.She is currently in the process of taking legal action against a customer who owes her £1070 (included in the total of £38 470) .She feels that there is only a limited chance of her succeeding in this action and so she decides to make a specific allowance against the whole amount.Apart from this item, Dolly expects, on the basis of past experience, that 98.5% of her trade receivables by value will be settled.The general allowance for bad trade receivables made at 31 August 20X8 was £330.There was no specific allowance at that date. Assuming that there are no other transactions during the year ended 31 August 20X9 relating to Dolly's bad and doubtful trade receivables, what was the total of her doubtful trade receivables expense in her statement of profit or loss for the year ended 31 August 20X9 (i.e.including both specific and general allowances) ?

A) £1301
B) £1631
C) £1961
D) £839