Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a

image text in transcribed
Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $12.000 at the beginning of 2024 . No previously written-off accounts recelvable were reinstated during 2024. At 12/31/2024, gross accounts receivable totaled $200,100, and prior to recording the adjusting entry to recognize bad debts expense for 2024 , the allowance for uncollectible accounts had a debit balance of 22,000 . Required: 1. What was the balance in gross accounts recelvable as of 12/31/2023 ? 2. What journal entry should Johnson record to recognize bad debt expense for 2024 ? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2024. Determine the amount of accounts receivable written off during 2024. 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2024 ? Complete this question by entering your answers in the tabs below. What was the balance in gross accounts recelvable as of 12/31/2023

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

Step: 3

blur-text-image

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

Accounting For Managers Financial Accounting

Authors: Morusu Sivasankar

1st Edition

6200624909, 978-6200624901

More Books

Students also viewed these Accounting questions

Question

8. What are some guidelines for writing condolence messages?

Answered: 1 week ago

Question

5. If yes, then why?

Answered: 1 week ago

Question

6. How would you design your ideal position?

Answered: 1 week ago