Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
in the accounts receivable subsidiary ledger using the aging−of−receivables method, the company's management estimates that uncollectible accounts will be $14,300. What will be the balance of the Allowance for Bad Debts reported on the balance sheet?
Based on the information given we were told that the management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance sheet.
If the Federal reserve want to increase the money supply what they would do would be to reduce or lower the discount or the interest rate in the economy.
When the interest rate is lowered, it would discourage savings. There would be an increase in the consumption of goods and services in the economy.
Also lowering the discount rate is going to cause the banks to want to borrow more reserves from the Fed. It would then be able to create more loans.
