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 $35,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit 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

• Bad Debts Expense	35,750
  Allowance for Doubtful Accounts		35,750

• Bad Debts Expense	36,325
  Allowance for Doubtful Accounts		36,325

• Bad Debts Expense	35,175
  Allowance for Doubtful Accounts		35,175

• Accounts Receivable	35,750
  Bad Debts Expense	575
  Sales		36,325

• Accounts Receivable	36,325
  Allowance for Doubtful Accounts		36,325