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

question 159

Multiple Choice

At the end of 2018,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 31,2018,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 $16,500.
• C)Credit to Allowance for Uncollectible Accounts of $16,500.
• D)Debit to Bad Debt Expense of $16,500;credit to Allowance for Uncollectible Accounts of $16,500.Bad Debt Expense = $12,000 + $4,500 = $16,500.

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Definitions:

Left Iliac Region

An area of the abdomen on the left side that is bounded by the iliac crest; often associated with parts of the colon and small intestine.

Epigastric Region

An area of the abdomen located just above the stomach and below the ribcage, often associated with stomach pain or discomfort.

Umbilical Region

The central area of the abdominal surface located around the umbilicus or belly button, often used as a reference point in abdominal anatomy.

Interstitial Spaces

Areas that exist between cells in body tissues, filled with interstitial fluid, which allows for the exchange of nutrients and waste products.