A Company Ages Its Accounts Receivables to Determine Its End

question 23

Multiple Choice

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 $375.What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

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Definitions:

Economic Development

The process of improving economic well-being and quality of life through growth and development, often through government policies and programs.

North America

A continent in the Northern Hemisphere and almost entirely within the Western Hemisphere; it includes countries such as Canada, the United States, and Mexico.

King George's War

The North American theater of the War of the Austrian Succession (1740-1748) involving French and British colonies.

New England

A region in the northeastern United States known for its colonial history, comprising states such as Massachusetts, Connecticut, Rhode Island, New Hampshire, Vermont, and Maine.