At the end of M. Wilson's first year of trading she lists all the amounts due from customers, which total $165,800. After writing off an irrecoverable receivable of $200, she estimates (after taking advice from a friend operating in the same trade) that 1% of her customers will not pay the amounts owing. The journal entry to record the required allowance is:

a. Cr. Receivables 200; Dr. Irrecoverable receivables Expense 200

b. Dr. Irrecoverable expense 1656; Cr. Allowance for irrecoverable receivables 1656

c. Dr. Allowance for irrecoverable receivables 1656; Cr. Irrecoverable receivables Expense 1656

d. Dr. Irrecoverable receivables Expense 200; Cr. Receivables 200

The total payments made in the year until September 30, 2019 for electricity was $12,000. The electricity bill for the last three months of 2019 is estimated to be $3,000 and expected to arrive on January 15,2020. The electricity expense for the year ended December 31, 2019 to be shown in income statement would be:

a. $9,000

b. $12,000

c. $15,000

d. $3,000