Joey's Trade Receivables at 31 December 2023 Were £24,000 and This

Joey's trade receivables at 31 December 2023 were £24,000 and this amount includes £1,200 owed by Zoom Ltd. Joey has been notified that Zoom Ltd is being liquidated and the amount of £1,200 owing to the business will not be paid. Which of the following statements is true?

A) Trade receivables on the statement of financial position at 31 December 2023 should be £22,800 and no bad debts need to be charged as an expense in the statement of profit or loss.
B) Trade receivables on the statement of financial position at 31 December should be £24,000 and no bad debts need to be charged as an expense in the statement of profit or loss.
C) Trade receivables on the statement of financial position at 31 December 2023 should be £22,800 and bad debts of £1,200 should be charged as an expense in the statement of profit or loss.
D) Trade receivables on the statement of financial position at 31 December 2023 should be £24,000 and bad debts of £1,200 should be charged as an expense in the statement of profit or loss.