Each December 31, Charity Company ages its accounts receivable to determine the amount of its adjustment for bad debts. At the end of this year, management estimated that $56,900 of the accounts receivable balance would be uncollectible. The Allowance for Doubtful Accounts account had a credit balance of $4,200. Prepare the adjusting journal entry that Charity Company should make on December 31 of the current year, to estimate bad debts expense.

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The Answer of Each December 31, Charity Company ages its accounts receivable to determine the amount of its adjustment for bad debts. At the end of this year, management estimated that $56,900 of the accounts receivable balance would be uncollectible. The Allowance for Doubtful Accounts account had a credit balance of $4,200. Prepare the adjusting journal entry that Charity Company should make on December 31 of the current year, to estimate bad debts expense.

Each December 31, Charity Company Ages Its Accounts Receivable to Determine