At the end of the current year, using the aging of receivable method, management estimated that $28,500 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $800. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

• Accounts Receivable	29,300
  Allowance for Doubtful Accounts		29,300

• Bad Debts Expense	27,700
  Allowance for Doubtful Accounts		27,700

• Accounts Receivable	28,500
  Bad Debts Expense	800
  Sales		29,300

• Bad Debts Expense	29,300
  Allowance for Doubtful Accounts		29,300

• Bad Debts Expense	28,500
  Allowance for Doubtful Accounts		28,500

Answer rating: 100% (QA)

Out of the choices provided the closest adjusting entry is Bad Debts Expense 28500 Allowance for Dou... View the full answer