At december 31, 2018, novak corp. company had a credit balance of $ 18,000 in allowance for doubtful accounts. during 2019, novak corp. wrote off accounts totaling $ 13,300. one of those accounts ($ 3,200) was later collected. at december 31, 2019, an aging schedule indicated that the balance in allowance for doubtful accounts should be $ 27,200. prepare journal entries to record the 2019 transactions of novak corp. company

Explanation:

The journal entries are shown below:

1. Allowance for Doubtful Accounts A/c Dr $ 13,300

      To Accounts receivable A/c $ 13,300

(Being written off amount is recorded)

2. Accounts receivable A/c Dr  $3,200

      To  Allowance for Doubtful Accounts A/c $3,200

(Being reverse written off)

3. Cash A/c Dr  $3,200

        To Accounts receivable A/c  $3,200

(Being amount collected)

4. Bad debt expense A/c Dr   $19,300

           To Allowance for doubtful debts   $19,300

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + 2019 bad debts - 2019 write off amount  + collected amount

$27,200 = $18,000 + 2019 bad debts - $13,300 + $3,200

$27,200 = $7,900+ 2019 bad debts  

So,2019 bad debts = $27,200 - $7,900 = $19,300

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.