Question

Wheeling Inc. uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $5,300. At the end of the year, the balance of Accounts Receivable is $103,000 and the unadjusted debit balance of the Allowance for Doubtful Accounts is $560. Credit sales during the year totaled $156,000. What is the estimated Bad Debt Expense for the current year?

Answer 1

Answer:

The estimated Bad Debt Expense for the current year is $5860

Explanation:

Wheeling Inc. uses the aging of accounts receivable method to estimated Bad Debt Expense for the current year is as follows;

Uncollected receivables = $5300

Doubtful Accounts = $560

Bad Debt Expense for the current year = Uncollected receivables + Doubtful Accounts

Bad Debt Expense for the current year = $5300 + $560

Bad Debt Expense for the current year = $5,860.