Curling Corporation ages it accounts receivable to determine end-of-period adjus

Question

Curling Corporation ages it accounts receivable to determine end-of-period adjustment of bad debts. At the end of 2004, management estimated that $14,750 of the accounts receivable balance would be noncollectable. The Allowance for Doubtful Accounts account had a debit balance of $175. What entry should Curling Corporation make on December 31, 2004, to estimate bad debts expense? (dr)Bad Debts Expense $14,750
a.(cr)Allowance for Doubtful Accounts $14,750
(dr)Bad Debts Expense $14,575

b.(cr)Allowance for Doubtful Accounts $14,575
(dr)Bad Debts Expense $14,925

c.(cr)Allowance for Doubtful Accounts $14,925
(dr)Accounts Receivable $14,750

d.(dr)Bad Debt Expense $175
(cr)Allowance for Doubtful Accounts $14,925

Explanation / Answer

(dr)   Bad Debts Expense $14,925

(cr)      Allowance for Doubtful Accounts $14,925

                     Allowance for Doubtful Accounts
Beginning Balance     $175       By Bad Debts Expense   $14,925
Ending Balance     $14,750
                         _______________________________________
                           $14,925                                          $14,925
                        ========================================

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