Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer 7-11, 7-12, and 7-13 alance in gross at the beginning of E 7-11 Uncollectible accounts; allowance method vs. direct write-off method L07-5, LO7-6
Please answer 7-11, 7-12, and 7-13
alance in gross at the beginning of E 7-11 Uncollectible accounts; allowance method vs. direct write-off method L07-5, LO7-6 312021. gross accounts e for 2021 Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in accounts receivable. The allowance for uncollectible accounts had a credit balance of $30,000 at the bear 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021. gross receivable totaled $500,000, and prior to recording the adjusting entry to recognize bad debts expense for 20 the allowance for uncollectible accounts had a debit balance of 55,000. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 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. Deter mine 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? E 7-12 Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method LO7-5, LO7-6 Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expen is established as a percentage of credit sales. For 2021, net credit sales totaled $4,500,000, and the estimated bad debt percentage is 1.5%. No previously written-off accounts receivable were reinstated during 2021. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2021 and $40,000, after adjusting entries, at the end of 2021. Required: 1. What is bad debt expense for 2021 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021. 3. If the company uses the direct write-off method, what would bad debt expense be for 2021? E 7-13 Calculate uncollectible accounts using method; record adjustment L07-5, L07-6 Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $180,000; estimated uncollectible = 10%. 2. Accounts 1-45 days past due = $25,000; estimated uncollectible = 20%. 3. Accounts more than 45 days past due = $10,000; estimated uncollectible = 30%. Before recording any adjustments, Dhaliwal has a debit balance of $45,000 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. 2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? alance in gross at the beginning of E 7-11 Uncollectible accounts; allowance method vs. direct write-off method L07-5, LO7-6 312021. gross accounts e for 2021 Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in accounts receivable. The allowance for uncollectible accounts had a credit balance of $30,000 at the bear 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021. gross receivable totaled $500,000, and prior to recording the adjusting entry to recognize bad debts expense for 20 the allowance for uncollectible accounts had a debit balance of 55,000. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 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. Deter mine 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? E 7-12 Uncollectible accounts; allowance method estimating bad debts as percentage of net sales vs. direct write-off method LO7-5, LO7-6 Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expen is established as a percentage of credit sales. For 2021, net credit sales totaled $4,500,000, and the estimated bad debt percentage is 1.5%. No previously written-off accounts receivable were reinstated during 2021. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2021 and $40,000, after adjusting entries, at the end of 2021. Required: 1. What is bad debt expense for 2021 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021. 3. If the company uses the direct write-off method, what would bad debt expense be for 2021? E 7-13 Calculate uncollectible accounts using method; record adjustment L07-5, L07-6 Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $180,000; estimated uncollectible = 10%. 2. Accounts 1-45 days past due = $25,000; estimated uncollectible = 20%. 3. Accounts more than 45 days past due = $10,000; estimated uncollectible = 30%. Before recording any adjustments, Dhaliwal has a debit balance of $45,000 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. 2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accountsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started