At the end of the current year, using the aging of accounts receivable method, management estimated that $21,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $550. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

At the end of the current year, using the aging of accounts receivable method, management estimated that $21,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $550. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple Choice Account Title Debit Credit Bad Debts Expense 21, 000 Allowance for Doubtful Accounts 21, 000 Account Title Debit Credit Bad Debts Expense 20, 450 Allowance for Doubtful Accounts 20, 450 O Account Title Debit Credit Bad Debts Expense 21, 550 Allowance for Doubtful Accounts 21, 550