At the End of 2018,Murray State Lenders Had a Balance

question 87

Multiple Choice

At the end of 2018,Murray State Lenders had a balance in its Allowance for Uncollectible Accounts of $4,500 (credit) 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 31,2018,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 $7,500.
• C)Credit to Allowance for Uncollectible Accounts of $7,500.
• D)Debit to Bad Debt Expense of $7,500;credit to Allowance for Uncollectible Accounts of $7,500.Bad Debt Expense = $12,000 - $4,500 = $7,500.

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