John works for a factory and receives a weekly paycheck. He typically places 3% of each paycheck into a bank savings account. The money placed in the savings account___ the economy. In addition to providing savings accounts to customers, like John, the bank invests money in several businesses. The money that the bank invests___ the economy.

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