At the end of the current year, using the aging of accounts receivable method, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. 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	22,750
  Bad Debts Expense	445
  Sales		23,195

• Accounts Receivable	23,195
  Allowance for Doubtful Accounts		23,195

• Bad Debts Expense	23,195
  Allowance for Doubtful Accounts		23,195

• Bad Debts Expense	22,750
  Allowance for Doubtful Accounts		22,750

• Bad Debts Expense	22,305
  Allowance for Doubtful Accounts		22,305