A Company Ages Its Accounts Receivables to Determine Its End

question 21

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?

• A)
• \[\begin{array} { | c | r | r | }
• \hline \text { Bad Debt Expense } & 15,750 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,750 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | c | r | r | }
• \hline \text { Bad Debt Experse } & 15,575 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,575 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | r | r | }
• \hline \text { Bad Debt Expense } & 15,925 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,925 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 15,750 & \\
• \hline \text { Bad Debt Expense } & 175 & \\
• \hline \text { Sales } & & 15,925 \\
• \hline
• \end{array}\]
• E)
• \(\begin{array}{|c|r|r|}
• \hline \text { Accounts Receivable } & 15,925 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 15,925 \\
• \hline
• \end{array}\)

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Definitions:

Intersender Role Conflict

A situation where an individual receives conflicting expectations or demands from multiple sources, leading to stress or difficulty in role performance.

Interrole Conflict

Occurs when there are incompatible demands placed upon a person by two or more statuses held simultaneously.

Norms

Established standards of behavior or beliefs that are accepted and expected within a society or group.

Group Cohesiveness

The extent to which members of a group support and validate one another while working to achieve a common goal.