A company ages its accounts receivables to determine its end of period adjustmen
ID: 2488725 • Letter: A
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 $15,250 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $145. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
Accounts Receivable 15,250 Bad Debt Expense 145 Sales 15,395Explanation / Answer
Bad debt expense 15395
Allowance for doubtful accounts 15395