Oak St. Store has $500,000 in Accounts Receivable on December 31, 2018. Oak St. estimates uncollectible accounts to be 5% of Accounts Receivable. Select the correct adjustment for uncollectible accounts if Oak St. Store has a $2,000 credit balance in Allowance for Uncollectible Accounts before adjusting entries at December 31, 2018.

options: Debit: Bad Debt Expense $25,000 Credit: Allowance for Uncollectible Accounts $23,000

Debit: Allowance for Uncollectible Accounts $23,000 Credit: Bad Debt Expense 23,000

Debit: Bad Debt Expense $25,000 Credit: Accounts Receivable $25,000

Debit: Bad Debt Expense $23,000 Credit: Allowance for Uncollectible Accounts $23,000