Music Ltd has a total balance on their receivables account at the year end of £56,200. After reviewing their customer accounts, Music Ltd have decided to write off a debt amounting to £2,600 and create a general receivables provision of 4% of remaining receivables. There is no receivables provision brought forward.
What will be the value of the general receivables provision? £4848£2600£2144£0£2352£4744£2248
What will be the irrecoverable debt expense on the P or L? £4848£2600£2144£0£2352£4744£2248