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Compassion Hospital uses the allowance method to account for its uncollectible accounts. It has the following balances on December 31 before any adjusting entries: Accounts

Compassion Hospital uses the allowance method to account for its uncollectible accounts. It has the following balances on December 31 before any adjusting entries: Accounts Receivable = $110,000 Allowance for Uncollectible Accounts = $6,000 (credit) The hospital estimates uncollectible accounts to be 30% of accounts receivable. What year-end adjustment (adjusting entry) should be made for uncollectible accounts? Multiple Choice Account Debit Credit Bad Debt Expense 27,000 Allowance for Uncollectible Accounts 27,000 Account Debit Credit Bad Debt Expense 33,000 Allowance for Uncollectible Accounts 33,000 Account Debit Credit Allowance for Uncollectible Accounts 27,000 Bad Debt Expense 27,000 Account Debit Credit Bad Debt Expense 33,000 Accounts Receivable 33,000

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