Monica's Trade Receivables at 31 December Were £35,000, Including an Amount

Multiple Choice

Monica's trade receivables at 31 December were £35,000, including an amount of £3,000 owed by Chandler Ltd. However, she was notified that Chandler Ltd is being liquidated and that none of the debt owing to Monica will be received. Which of the following statements is true?

A) Monica's trade receivables at 31 December should be shown on the statement of financial position at £35,000 and £3,000 charged to the statement of profit or loss as a bad debt.
B) Monica's trade receivables at 31 December should be shown on the statement of financial position at £32,000 and no amount charged to the statement of profit or loss for bad debts.
C) Monica's trade receivables at 31 December should be shown on the statement of financial position at £32,000 and £3,000 charged to the statement of profit or loss as a bad debt.
D) Monica's trade receivables at 31 December should be shown on the statement of financial position at £35,000 and no amount charged to the statement of profit or loss for bad debts.