At the end of the current year, using the aging of receivable method, management estimated that $27,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $495. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A.
| Accounts Receivable | 27,750? | |
| Bad Debts Expense | 495? | |
| Sales | 28,245? |
B.
| Bad Debts Expense | 27,255? | |
| Allowance for Doubtful Accounts | 27,255? |
C.
| Bad Debts Expense | 28,245? | |
| Allowance for Doubtful Accounts | 28,245? |
D.
| Accounts Receivable | 28,245? | |
| Allowance for Doubtful Accounts | 28,245? |
E.
| Bad Debts Expense | 27,750? | |
| Allowance for Doubtful Accounts | 27,750? |
Answer: B
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