When you use an aging schedule for estimating uncollectible accounts, bad debts expense is:

Multiple Choice

A plug that is determined by the difference between the pre-adjustment balance and the necessary post-adjustment balance in the allowance for uncollectible accounts, and the necessary post-adjustment balance in the allowance for uncollectible accounts balance is calculated using the aging schedule.

A plug that is determined by the difference between the pre-adjustment balance and the necessary post-adjustment balance in accounts receivable.

Calculated using the aging schedule to determine the amount of bad debts that will occur, with that amount recognized as bad debts expense.

Calculated using the aging schedule as applied to the pre-adjustment and post-adjustment balances in the allowance for uncollectible accounts balance.