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(Solution document) 65) A company ages its accounts receivables to determine its end of period adjustment for bad debts.


65) 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 $19,500 of the accounts receivable balance would be uncollected. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $500. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

A. Bad Debts Expense 19,500, Allowance for Doubtful Accounts 19,500

B. Bad Debts Expense 19,000, Allowance for Doubtful Accounts 19,000

C. Bad Debts Expense 20,000, Allowance for Doubtful Accounts 20,000

D. Accounts Receivable 19,500, Bad Debts Expense 500 Sales 20,000

E. Accounts Receivable 20,000, Allowance for Doubtful Accounts 20,000

 







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