A Company Ages Its Accounts Receivables to Determine Its End

question 54

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 $175.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:

Knowledge Workers

Employees whose main capital is knowledge, typically working in fields such as IT, finance, and education, where they think for a living.

Technically Efficient

Refers to a scenario where a firm or system operates in such a way that it cannot produce more of one good without reducing the output of another, utilizing the least amount of resources.

Considerable Autonomy

The significant freedom and independence given to employees or units to make decisions and perform their work without close supervision.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting, analyzing, and disseminating essential statistical data about labor markets, working conditions, and price changes.