Guinevere Company has the following data extracted from its Accounts Receivable records at June $30,2011$

Customer Balance Current $31-75$ days Over $75$ days

A $ $8,000$ $ $5,000$ $ $2,000$ $ $1,000$

B $ $2,000-$ $ $2,000-$

C $ $4,000$ $ $4,000--$

D $ $9,000$ $ $2,000$ $ $1,000$ $ $6,000$

E $ $3,000$ $ $2,000-$ $ $1,000$

F $ $6,000$ $ $6,000--$

G $ $7,000$ $ $3,000$ $ $3,000$ $ $1,000$

Totals $ $39,000$ $ $22,000$ $ $8,000$ $ $9,000$

Guinevere's sales terms are $1/15$ n$/30$ and it records sales at the gross amount of the invoice.

Guinevere's year end is June $30$

The unadjusted balance in the Allowance for Doubtful Accounts at June $30$ is $$8,000$ dr$.$

Guinevere makes average sales of $$2,000,000$ per year and averages write offs of uncollectible balances of $$100,000$ per year.

Sales for the year ended June $30,2010$ are $$1,400,000$ credit sales and $$400,000$ cash sales

Guinevere has a very conservative receivables management strategy.

No adjusting entries have been recorded at June $30$

Assume that Guinevere had always been allowed under Canadian GAAP to use the Direct Write$-$Off Method because it had never experienced any bad debt losses in its history as a company. There isn't even an Allowance" account in its General Ledger Chart of Accounts. Under this assumption, the adjusting entry June $30$ to record the provision for uncollectible accounts would involve:

Multiple Choice

A debit to "Uncollectible Accounts Expense"

No entry to be made

A debit to "Allowance for Uncollectible Accounts"

A credit to "Uncollectible Accounts Expense"

A credit to Accounts Receivable