Exercise $7-12($Algo$)$ Uncollectible accounts; allowance method vs$.$ direct write$-$off method $[$LO$7-$

$5,7-6$

Johnson Company calculates its allowance for uncollectible accounts as $10\%$ of its ending balance in gross accounts

receivable. The allowance for uncollectible accounts had a credit balance of $$10,000$ at the beginning of $2024.$ No

previously written$-$off accounts receivable were reinstated during $2024.$ At $\frac{12}{31}\frac{?}{2024},$ gross accounts receivable totaled

$$166,700,$ and prior to recording the adjusting entry to recognize bad debts expense for $2024,$ the allowance for

uncollectible accounts had a debit balance of $18,300.$

Required:

What was the balance in gross accounts receivable as of $\frac{12}{31}\frac{?}{2023}?$

What journal entry should Johnson record to recognize bad debt expense for $2024?$

Assume Johnson made no other adjustment of the allowance for uncollectible accounts during $2024.$ Determine the

amount of accounts receivable written off during $2024.$

If Johnson instead used the direct write$-$off method, what would bad debt expense be for $2024?$

Answer is not complete.

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What was the balance in gross accounts receivable as of $\frac{12}{31}\frac{?}{2023}?$