A business has an allowance for receivables in the statement of financial position brought forward from the year ended 31 December 20X6 of $8,400.Total receivables outstanding at 31 December 20X7 are $210,000. Upon reviewing the balances, it is determined that an allowance should be made equivalent to 3% of the total balance. What is the increase/ decrease in allowance for receivables included in the statement of profit or loss for the year ended 31 December 20X7?Also indicate whether this is a debit or a credit balance.