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 $21,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $575. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple Choice Accounts Receivable. 22,325 Allowance for Doubtful Accounts 22,325 Bad Debts Expense 21,175 Allowance for Doubtful Accounts 21,175 Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable Bad Debts Expense Sales 21,750 21,750 21,750 575 22,325