Healthy Lawn Maintenance Company Started a Lawn Services Business on January

Healthy Lawn Maintenance Company started a lawn services business on January 1, 2013. It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. During 2013, Healthy Lawn Maintenance billed its customers a total of $2,000,000 for services rendered during the year. It made journal entries at the end of each month.

The 2013 year-end balance in Accounts Receivable, Gross, for Healthy Lawn Maintenance is $1,085,000 An aging of these accounts receivable shows that the estimated uncollectible amount is $24,200. Before aging the accounts, the Allowance for Uncollectibles has a debit balance of $15,000 from writing off actual accounts during 2013. Healthy Lawn Maintenance would record the following adjusting entry at the end of 2013 to obtain a credit balance in the Allowance for Uncollectibles of $24,200:

A) Bad Debt Expense. . .. . . . . . . . . . . . . . . . . . . . . 24,200
Allowance for Uncollectibles . . . . . . . . . . . . . 24,200
B) Allowance for Uncollectibles . . . . . . . . . . . . . . . . 24,200
Bad Debt Expense. . . . . . . . . . . . . . . . . . . . 24,200
C) Allowance for Uncollectibles . . . . . . . . . . . . . . . . 39,200
Bad Debt Expense. . . . . . . . . . . . . . . . . . . . 39,200
D) Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . 39,200
Allowance for Uncollectibles . . . . . . . . . . . . . 39,200
E) Allowance for Uncollectibles . . . . . . . . . . . . . . . . 15,000
Bad Debt Expense. . . . . . . . . . . . . . . . . . . . 15,000