Bad Debts Expense Assignment
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $175. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
which one is true:
a. Bad Debt Expense…15,750 Allowance for Doubtful Accounts..15,750 b. Bad Debt Expense…15,575 Allowance for Doubtful Accounts…15,575 c. Bad Debt Expense…15,925 Allowance for Doubtful Accounts…15,925 d. Accounts Receivable…15,750 Bad Debt Expense…175 Sales…15,925 e. Accounts Receivable…15,925 Allowance for Doubtful Accounts…15,925. .