At Year End Dodgy Ltd Had a Balance in Accounts

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000.It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500.It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable.
- What was the journal entry needed to bring the Allowance for doubtful debts to the required level after writing off the debt of Houdini Ltd?

A)

B)

C)

D)