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Question
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.
| Bad Debt Expense | 15,750 | |
| Allowance for Doubtful Accounts | 15,750 |
B.
| Bad Debt Expense | 15,575 | |
| Allowance for Doubtful Accounts | 15,575 |
C.
| Bad Debt Expense | 15,925 | |
| Allowance for Doubtful Accounts | 15,925 |
D.
| Accounts Receivable | 15,750 | |
| Bad Debt Expense | 175 | |
| Sales | 15,925 |
E.
| Accounts Receivable | 15,925 | |
| Allowance for Doubtful Accounts | 15,925 |
Answer: C
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
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Q:
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Q:
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C. Solely by the budget committee.
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E. After the accounting period has begun.
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