A business maintains an allowance for irrecoverable debts of 2% of trade receivables.

At the beginning of the financial year on 1 January the trade receivables total was ＄48 000.

At the end of the financial year on 31 December the trade receivables total was ＄37 000.

When the business owner prepared the statement of profit or loss for the year ended 31 December, an irrecoverable debt of ＄1600 which had occurred during the year had not been written off.

No adjustment had been made to deal with the allowance for irrecoverable debts at 31 December.

By which amount was the profit for the year overstated?