On December 31, 2012, Mark Inc. estimates future bad debts to be $6,500. The Allowance for Uncollectible Accounts has a credit balance of $2,500 before any year-end adjustment. What adjustment should Mark Inc. record for the estimated bad debts on December 31, 2012?
A) Debit Bad Debt Expense, $6,500; credit Allowance for Uncollectible Accounts, $6,500.
B) Debit Bad Debt Expense, $4,000; credit Allowance for Uncollectible Accounts $4,000.
C) Debit Allowance for Uncollectible Accounts, $9,000; credit Bad Debt Expense, $6,500.
D) Debit Bad Debt Expense, $9,000; credit Allowance for Uncollectible Accounts, $9,000.
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