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29 June, 20:48

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 $39,375 of the accounts receivable balance would be uncollectible. prior to any year-end adjustments, the allowance for doubtful accounts had a credit balance of $3,285. what adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

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  1. 29 June, 21:06
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    Allowance for doubtful accounts

    39,375-3,285=36,090

    The journal entry

    Debit: Bad Debt Expense

    36,090

    Credit: Allowance for Doubtful Accounts

    36,090
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