A Company Ages Its Accounts Receivables to Determine Its End

question 108

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?

• A) \[\begin{array} { | l | c | c | }
• \hline \text { Bad Debt Expense } & 36,090 & \\
• \hline \text { Allowance for Doubtful Accounts } & & \mathbf { 3 6 , 0 9 0 } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | c | c | }
• \hline \text { Bad Debt Expense } & 42,660 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 42,660 \\
• \hline
• \end{array}\]
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Bad Debt Expense } & 39,375 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 39,375 \\
• \hline
• \end{array}\)
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 39,375 & \\
• \hline \text { Bad Debt Expense } & 3,285 & \\
• \hline \text { Sales } & & 42,660 \\
• \hline
• \end{array}\]
• E) \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Receivable } & 36,090 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 36,090 \\
• \hline
• \end{array}\)

---

Definitions:

Top-Down Supervisory

A management style where decisions and instructions flow from the top of the organizational hierarchy downward.

Coaches

Individuals who instruct, guide, and motivate others in developing skills, achieving personal or professional goals, and maximizing potential.

Managerial Coach

A role assumed by managers where they support, develop, and challenge their employees through guidance and feedback, enhancing their performance.

Legislate

The act of creating laws or setting regulations by a governing body.