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 $24,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $650. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Bad Debts Expense	24,000
Allowance for Doubtful Accounts		24,000

Bad Debts Expense	24,650
Allowance for Doubtful Accounts		24,650

Accounts Receivable	24,000
Bad Debts Expense	650
Sales		24,650

Bad Debts Expense	23,350
Allowance for Doubtful Accounts		23,350

Accounts Receivable	24,650
Allowance for Doubtful Accounts		24,650