Wheeling Inc. uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $7,100. At the end of the year, the balance of Accounts Receivable is $121,000 and the unadjusted debit balance of the Allowance for Doubtful Accounts is $920. Credit sales during the year totaled $192,000. What is the estimated Bad Debt Expense for the current year

$8,020

Explanation:

estimated uncollectible receivables = $7,100

accounts receivables = $121,000

unadjusted debit balance of allowance for uncollectible accounts = $920

credit sales during the year = $192,000

bad debt expense = unadjusted debit balance + estimated uncollectible receivables = $7,100 + $920 = $8,020

the adjusting journal entry:

Dr Bad debt expense 8,020

    Cr Allowance for uncollectible accounts 8,020

The allowance for uncollectible accounts account is a contra asset account that has a normal credit balance.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerall of these;