At the End of 2012,Murray State Lenders Had a Balance

question 33

Multiple Choice

At the end of 2012,Murray State Lenders had a balance in its Allowance for Uncollectible Accounts of $4,500 (debit) before any adjustment.The company estimated its future uncollectible accounts to be $12,000 using the percentage-of-receivables method.Murray State's adjustment on December 31,2012,to record its estimated uncollectible accounts included a:

• A)Credit to Allowance for Uncollectible Accounts of $12,000.
• B)Debit to Bad Debt Expense of $16,500.
• C)Credit to Allowance for Uncollectible Accounts of $16,500.
• D)Both b and c.

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Definitions:

Continuous Process Manufacturing

A production method used to manufacture products without interruption, often in chemical, food, and petroleum industries.

Equivalent Units

Equivalent units are a concept used in cost accounting to express the amount of work done during a period in terms of fully completed units of output.

Materials and Conversion Costs

The sum of raw materials costs and the costs to convert them into finished goods, including labor and overhead.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product or service, including all variable and fixed costs.