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

image text in transcribedimage 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 $13,000 at the beginning of 2024. No previously written-off accounts receivable were reinstated during 2024. At 12/31/2024, gross accounts receivable totaled $216,800, and prior to recording the adjusting entry to recognize bad debts expense for 2024, the allowance for uncollectible accounts had a debit balance of 23,800. 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? Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $256,000; estimated uncollectible = 15%. 2. Accounts 1-30 days past due = $32,000; estimated uncollectible = 19%. 3. Accounts 31-90 days past due = $25,600; estimated uncollectible - 23% 4. Accounts more than 90 days past due = $19,200; estimated uncollectible - 27%. At 12/31/2024, before recording any adjustments, Zuo has a credit balance of $24,900 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2024 balance for Zuo's allowance for uncollectible accounts. 2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts? 3. Calculate Zuo's 12/31/2024 net accounts receivable balance.

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

International Accounting

Authors: Frederick D. Choi, Gary K. Meek

7th Edition

978-0136111474, 0136111475

More Books

Students also viewed these Accounting questions

Question

What is the difference between persistence and self-determination?

Answered: 1 week ago