At the end of the current year, using the aging of receivable method, management estimated that $31,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $535. 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	31,215
  Allowance for Doubtful Accounts		31,215

• Bad Debts Expense	31,750
  Allowance for Doubtful Accounts		31,750

• Bad Debts Expense	32,285
  Allowance for Doubtful Accounts		32,285

• Accounts Receivable	32,285
  Allowance for Doubtful Accounts		32,285

• Accounts Receivable	31,750
  Bad Debts Expense	535
  Sales		32,285