Describe the correct answer and defend why it was correct. For instance, the transaction would have increased accounts payable because it increased something the company owed. The accounts payable account is credited because liabilities are increased with a credit entry. For calculation problems enter the calculation leading up to the solution. For more essay type problems refer back to the sources as to why it is correct. 40. At their year-end a company reported that accounts receivable had a balance of $136.000 and the allowance for uncollectible accounts had a debit balance of $300 prior to any year end adjusting entries. An analysis of accounts receivable suggests that the amount of uncollectibles in accounts receivable at year end is 4%. The year end adjustment for bad debt expense based on the allowance method would be: Selected Answer: $5,146. Answers: $5,140 B. $5,740 $5,146. D. $5,444