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At 1 November 20X5, Sanjay Motors is owed $20,000 by Jackson for servicing and repair work carried out on Jackson's fleet of motor vehicles. Of the $20,000 outstanding, $3,500 relates to work that Jackson feels was sub-standard. Despite discussions and negotiation, and although Jackson is generally a 'good customer', Sanjay is doubtful that Jackson will ever pay this $3,500. What allowance for receivables should Sanjay Motors make to account for this doubtful debt? A. A specific allowance of $20,000 as Jackson may decide not to pay any of their debt B. A specific allowance of $3,500 C. None, Jackson is a good customer so Sanjay Motors should assume they will eventually pay D. A general allowance of $3,500 |