A Company Ages Its Accounts Receivables to Determine Its End

question 94

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 $39,375 of the accounts receivable balance would be uncollectible.Prior to any year-end adjustments,the Allowance for Doubtful Accounts had a credit balance of $3,285.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:

Recursive Method Call

A process where a method in a programming language calls itself in order to solve a problem by breaking it down into simpler sub-problems.

Computer System

An electronic device capable of executing instructions to perform tasks, consisting of hardware and software components.

Iterative Method

An approach in computing where a sequence of operations is repeatedly applied to gradually approach a desired result.

Power of X

Power of X typically describes a mathematical operation where a number (X) is multiplied by itself a certain number of times.