At December 3 2018, Waco Travel Agency has an Accounts Receivable balance of $93,000. Allowance for Uncollectible Accounts has a credit balance of $870 before the year-end adjustment. Service revenue (all on account) for 2018 was $800,000. Waco estimates that its uncollectible-account expense for the year is 1% of service revenue. Make the year-end entry to record uncollectible- account e are reported on the balance sheet at December 31,2018.
Show how Accounts Receivable and Allowance for Uncollectible Accounts.

                          Waco Travel Agency

                              Journal entry

Date           Account and explanation                Debit        Credit

Dec 31Bad debt expense (800,000 * 1%)       $8,000

              Allowance for uncollectible accounts                $8,000

           (To record uncollectible account expense)  

                           Waco Travel Agency

                                  Balance Sheet

Current assets

Account receivable                                        $93,000  

Less: Allowance for uncollectible account($8,870) ($8,000 + $870)

                                                                        $84,130

b is the correct answer