At the End of the Current Year,using the Aging of Receivable

question 86

Multiple Choice

At the end of the current year,using the aging of receivable method,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 credit balance of $375.What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

---

Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals, groups, and even nations to cope with realities and to maintain self-image.

Displacement

A defense mechanism where an individual redirects emotional impulses from a real object to a substitute target.

Repression

A defense mechanism where unpleasant thoughts, feelings, or desires are unconsciously excluded from consciousness.

Psychodynamic Tradition

A psychological perspective that emphasizes unconscious processes and childhood experiences in shaping behavior and personality.