Question: At the end of the current year, using the aging of accounts receivable method, management estimated that $22,750 of the accounts receivable balance would be

At the end of the current year, using the aging of accounts receivable method, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

  • Accounts Receivable 22,750
    Bad Debts Expense 445
    Sales 23,195
  • Accounts Receivable 23,195
    Allowance for Doubtful Accounts 23,195
  • Bad Debts Expense 23,195
    Allowance for Doubtful Accounts 23,195
  • Bad Debts Expense 22,750
    Allowance for Doubtful Accounts 22,750
  • Bad Debts Expense 22,305
    Allowance for Doubtful Accounts 22,305

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