4. The balance in accounts receivable of the Grant Corp. is $150,000, and the balance in the allowance for uncollectibles is a credit of $5,000. An aging of the receivables at year endindicates that $7,500 of accounts receivable will never be collected. Using the balance sheet approach, what is the year-end adjusting entry that Grant must make on December 31?

a. Bad Debt Expense 7,500 Allowance for Uncollectibles 7,500

b. Bad Debt Expense 12,500 Allowance for Uncollectibles 12,500

c. Allowance for Uncollectibles 7,500 Accounts Receivable 7,500

d. Bad Debt Expense 2,500 Allowance for Uncollectibles 2,500