Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts recelvable. The allowance for uncollectible accounts had a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts recelvable. The allowance for uncollectible accounts had a credit baiance of $22,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $366,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021 , the allowance for uncollectible accounts had a debit balance of 40,300 . Required: 1. What was the balance in gross accounts receivable as of 12/31/2020 ? 2. What journal entry should Johnson record to recognize bad debt expense for 2021 ? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021? What was the balance in gross accounts receivable as of 12/31/2020? 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 $22,000 at the beginning of 2021 . No previously written-off accounts recelvable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $366,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021 , the allowance for uncollectible accounts had a debit balance of 40,300 . Required: 1. What was the balance in gross accounts recelvable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 . 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021 ? What journal entry should Johnson record to recognize bad debt expense for 2021 ? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Record the entry to recognize bad debt expense for 2021. 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 $22,000 at the beginning of 2021 . No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts recelvable totaled $366,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021 , the allowance for uncollectible accounts had a debit balance of 40,300 . Required: 1. What was the balance in gross accounts receivable as of 12/31/2020 ? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021, Determine the amount of accounts receivable written off during 2021 . 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021 ? Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts recelvable written off during 2021. 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 $22,000 at the beginning of 2021 . No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $366,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021 , the allowance for uncollectible accounts had a debit balance of 40,300 . Required: 1. What was the balance in gross accounts receivable as of 12/31/2020 ? 2. What journal entry should Johnson record to recognize bad debt expense for 2021 ? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021 ? If Johnson instead used the direct write-off method, what would bad debt expense be for 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Nuclear Auditing Handbook A Guide For Quality Systems Practitioners

Authors: Charles Moseley, Norman Moreau, Karen Douglas

1st Edition

1636940072, 978-1636940076

More Books

Students also viewed these Accounting questions