A company ages its accounts receivables to determine its end of period adjustmen

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?

Explanation / Answer

Bad debt expense 15395

Allowance for doubtful accounts 15395

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