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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
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 $30,000 at the beginning of 2024 . No previously written-off accounts receivable were reinstated during 2024 . At 12/31/2024, gross accounts receivable totaled $500,100, and prior to recording the adjusting entry to recognize bad debts expense for 2024 , the allowance for uncollectible accounts had a debit balance of 55,000 . Required: 1. What was the balance in gross accounts receivable 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 receivable as of 12/31/2023
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