A Company Ages Its Accounts Receivables to Determine Its End

question 37

Essay

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?
A) $$\begin{array} { | l | r | r | } \hline \text { Bad Debts Expense } & 15,750 & \\\hline \text { Allowance for Doubtful Accounts } & & 15,750 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Bad Debts Expense } & 15,375 & \\\hline \text { Allowance for Doubtful Accounts } & & 15,375 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Bad Debts Expense } & 16,125 & \\\hline \text { Allowance for Doubtful Accounts } & & 16,125 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 15,750 & \\\hline \text { Bad Debts Expense } & 375 & \\\hline \text { Sales } & & 16,125 \\\hline\end{array}$$
E) $$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 16,125 & \\\hline \text { Allowance for Doubtful Accounts } & & 16,125 \\\hline\end{array}$$
$$\begin{array} { | l | r | } \hline \text { Desired balance in allowance account } & 15,750  \mathrm { credit } \\\hline \text { Current balance: } & 375  \mathrm { debit } \\\hline \text { Required: adjustment to allowance } & \$ 16,125  \mathrm { credit } \\\hline\end{array}$$

• A)\[\begin{array} { | l | r | r | }
• \hline \text { Bad Debts Expense } & 15,750 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,750 \\
• \hline
• \end{array}\]
• B)\[\begin{array} { | c | r | r | }
• \hline \text { Bad Debts Expense } & 15,375 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,375 \\
• \hline
• \end{array}\]
• C)\[\begin{array} { | c | r | r | }
• \hline \text { Bad Debts Expense } & 16,125 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 16,125 \\
• \hline
• \end{array}\]
• D)\[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 15,750 & \\
• \hline \text { Bad Debts Expense } & 375 & \\
• \hline \text { Sales } & & 16,125 \\
• \hline
• \end{array}\]
• E)\[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 16,125 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 16,125 \\
• \hline
• \end{array}\]
• \[\begin{array} { | l | r | }
• \hline \text { Desired balance in allowance account } & 15,750  \mathrm { credit } \\
• \hline \text { Current balance: } & 375  \mathrm { debit } \\
• \hline \text { Required: adjustment to allowance } & \$ 16,125  \mathrm { credit } \\
• \hline
• \end{array}\]

Appreciate the complexities of racial domination and the forms it can take.

Grasp the significance of symbolic power in maintaining racial hierarchies.

Comprehend the multi-dimensional nature of racial categories and their context-specific definitions.

Acknowledge the role of laws and policies in shaping racial and ethnic identities.

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Definitions:

Collaborating

A conflict management style cooperating with the other party to understand their concerns and expressing your own concerns in an effort to find a mutually and completely satisfactory solution (win-win).

Win-Win Solution

A resolution to a conflict where all parties benefit or achieve their objectives without compromising.

Concerns

Issues or matters that are a cause for worry or care, often requiring attention or action.

Satisfactory Solution

An outcome or resolution to a problem that meets the requirements or expectations to an acceptable level.