Dilbert Sells Goods on Credit to Almost 400 Customers

Multiple Choice

Dilbert sells goods on credit to almost 400 customers.He knows from experience that a few of his customers will not pay up, but it is generally difficult to determine in advance which ones will prove to be bad payers. At Dilbert's year end, 30 September 20X4, his trade receivables total was £85 520.He discovered just after the year end that one of his oldest customers, Farebrother, had gone bankrupt.At 30 September 20X4, Farebrother owed Dilbert £1820 and it seemed highly unlikely that Dilbert would ever recover it.Reviewing his list of trade receivables, Dilbert identified two other amounts, of £180 and £263, that had been owed for over a year, and he decided that a specific allowance was required in respect of these amounts.Dilbert had never previously had to make an allowance for specific trade receivables.
He decided to continue to make his usual 1% allowance against the remainder of the trade receivables outstanding at 30 September 20X4.The general allowance at 30 September 20X3 was £750.
What was the net value of trade receivables in Dilbert's statement of financial position at 30 September 20X4 (to the nearest £) ?

A) £82 424
B) £84 665
C) £82 863
D) £83 174