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 $31,500 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $900. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Please see answer in explanation column

Explanation:

Account receivables for uncollectibles= $31,500

Allowance for Doubtful Accounts = debit balance of $900

Adjusting entry for bad debts expense =Account receivables + debit balance of $900

= $31,500 + 900

$32,400

Adjusting entry for the record of  bad debts expense  

Accounts titles                 Debit                       Credit

Bad debt expenses$ 32,400

To Allowance for doubtful accounts             $ 32,400

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

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