A Company Ages Its Accounts Receivables to Determine Its End

question 141

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) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Minus

In engineering and mathematics, "minus" indicates a subtraction operation or a negative value in measurements and tolerances.

Abbreviation

The act of shortening something by omitting letters or using initials.

Maximum

The highest or utmost point, level, or value that an entity or parameter can achieve or has been observed to achieve.

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