Sumit maintains a position for doubtful debts at 5% of the trade receivables at the end of each financial year. On 1 January 2016 the trade receivables amounted to $3500 and the provision for doubtful debts was $175. The income statement for the year ended 31 December 2016 was debited with $15 for the provision of doubtful debts. How much did the trade receivables owe on 31 December 2016?

Source: Specimen Paper 1 (2020 syllabus) · 20 · 2020