A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year: (3 points) Debit Credit
Cash sales………………………… …………………….. $188,000
Credit sales………………………… …………………… 275,000
Accounts receivable……………………⠀¦â€¦â€¦â€¦â€¦â€¦.. $76,000
Allowance for doubtful accounts……………………… .. 1,000
Prepare the adjusting entry to estimate bad debts assuming an aging analysis estimates that 8% of the outstanding accounts receivable will be uncollectible.

Particulars                                   Amount

Provision for uncollectible         $6,080 ($76000*8%)

Less: Provision already made   $1,000

Provision to be made                $5,080

Date       Particulars                                                      Debit     Credit

31-Dec    Bad Debts                                                    $5,080

                    To Allowance for Doubtful Accounts                    $5,080

               (Being the adjusting entry to estimate bad debts)

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )

answer; importance to people; or acceptance;