A Company Ages Its Accounts Receivables to Determine Its End

question 38

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 $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

---

Definitions:

Trisomy

A genetic condition characterized by the presence of an extra chromosome in an organism's cells, causing developmental abnormalities.

Monosomy

A chromosomal condition characterized by the absence of one chromosome from the normal diploid number of a species, leading to genetic disorders.

Sex Chromosomes

Chromosomes that determine the sex of an organism, with common configurations being XY for male and XX for female in humans.

Sex-linked Gene

A gene located on a sex chromosome (commonly the X chromosome), which often leads to the expression of traits differing between sexes.