Question $30(0\mathrm{.}400000006$ points$)$

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($credit$)$ 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 a:

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

Debit to Bad Debt Expense of $$7,500.$

Credit to Allowance for Uncollectible Accounts of $$7,500.$

Debit to Bad Debt Expense of $$7,500$; credit to Allowance for Uncollectible

Accounts of $$7,500.$