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At the end of 2015, Murray State Lenders had a balance in its accounts receivables of $100,000 and Allowance for Uncollectible Accounts of $4,500 (debit)

At the end of 2015, Murray State Lenders had a balance in its accounts receivables of $100,000 and Allowance for Uncollectible Accounts of $4,500 (debit) before any adjustment. The company estimated that 12% of accounts receivables is uncollectible. Murray State's adjustment on December 31, 2015, to record its estimated uncollectible accounts included

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A. Credit to Allowance for Uncollectible Accounts of $12,000

B. Debit to Bad Debt Expense of $16,500; credit to Allowance for Uncollectible Accounts of $16,500

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.

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