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

answer; ///(c) i believe its it ignores cash flows following the payback period;

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%