Using the aging-of-accounts receivable method to estimate uncollectible receivables, CMU Corporation estimates that $3,750 of its accounts receivable will be uncollectible. Prior to adjustment, the Allowance for Uncollectible Accounts has a credit balance of $600. Bad debt expense to be reported on the income statement is: O A. $3,750 O B. $4,350 OC. $3,150 OD. $600 IXOS Ltd. accepted an eighteen -month, $15,000, 8% note from ECM Corporation on June 1, 2017. The amount of interest to be accrued on December 31, 2017, is: O A. $1,800 O B. $1,200 OC. $700 OD. $600 Under the allowance method for uncollectible receivables, the entry to record bad debt expense has what effect on the financial statements? O A. Decreases assets and has no effect on net income. OB. Decreases net income and decreases assets. OC. Decreases owners' equity and increases liabilities. OD. Increases expenses and increases owners' equity