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?

Multiple Choice

• Bad Debts Expense	31,500
  Allowance for Doubtful Accounts		31,500

• Bad Debts Expense	30,600
  Allowance for Doubtful Accounts		30,600

• Bad Debts Expense	32,400
  Allowance for Doubtful Accounts		32,400

• Accounts Receivable	31,500
  Bad Debts Expense	900
  Sales		32,400

• Accounts Receivable	32,400
  Allowance for Doubtful Accounts		32,400