Ask Question
2 April, 07:00

Quill Industries uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $20,000. The unadjusted credit balance in the Allowance for Doubtful Accounts account is $6,400. What is the estimated Bad Debt Expense for the period?

+4
Answers (1)
  1. 2 April, 09:46
    0
    The estimated Bad Debt Expense for the period is $13,600

    Explanation:

    Quill Industries estimates of uncollectible receivables resulting from the aging analysis equals $20,000. The company uses the aging of accounts receivable method and the Allowance for Doubtful Accounts has credit balance of $6,400 before adjusting.

    Bad debt Expense = $20,000 - $6,400 = $13,600

    The entry:

    Debit Bad debts expense $13,600

    Credit Allowance for doubtful accounts $13,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Quill Industries uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers