At the end of 2021, Murray Company had a balance in its Allowance for Uncollectible Accounts of $4,500 (credit) before any adjustment. The company estimated its future uncollectible accounts to be $12,000 using the percentage-of-receivables method. Murray Company's year-end adjustment to Allowance for Uncollectible Accounts on December 31, 2021 included a: a. Debit to Bad Debt Expense of $12,000.
b. Credit to Allowance for Uncollectible Accounts of $12,000.
c. Credit to Bad Debt Expense of $7,500.
d. Credit to Allowance for Uncollectible Accounts of $7,500.