Question
In: Accounting
Johnson Company calculates its allowance for uncollectible accounts as 20% of its ending balance in gross...
Johnson Company calculates its allowance for uncollectible accounts as 20% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $29,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $483,300, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 53,200.
Required:
1. What was the balance in gross accounts receivable as of 12/312020?
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?
Solutions
Expert Solution
| 1 | |||
| Balance in Gross Accounts Receivable | 145000 | =29000/20% | |
| 2 | |||
| General Journal | Debit | Credit | |
| Bad Debts expense | 149860 | =(483300*20%)+53200 | |
| Allowance for uncollectible accounts | 149860 | ||
| 3 | |||
| Amount of Accounts Receivable written off | 82200 | =29000+53200 | |
| 4 | |||
| Bad debt expense for 2021 | 82200 |
ekkarill92 answered 2 years agoRelated Solutions
Johnson Company calculates its allowance for uncollectible accounts as 20% of its ending balance in gross...
Johnson Company calculates its allowance for uncollectible
accounts as 20% of its ending balance in gross accounts receivable.
The allowance for uncollectible accounts had a credit balance of
$20,000 at the beginning of 2021. No previously written-off
accounts receivable were reinstated during 2021. At 12/31/2021,
gross accounts receivable totaled $333,500, and prior to recording
the adjusting entry to recognize bad debts expense for 2021, the
allowance for uncollectible accounts had a debit balance of 36,600.
Required: 1. What was the...
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross...
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
$24,000 at the beginning of 2021. No previously written-off
accounts receivable were reinstated during 2021. At 12/31/2021,
gross accounts receivable totaled $400,100, and prior to recording
the adjusting entry to recognize bad debts expense for 2021, the
allowance for uncollectible accounts had a debit balance of
43,900.
Required:
1. What was the...
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts recei...
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
$30,000 at the beginning of 2021. No previously written-off
accounts receivable were reinstated during 2021. At 12/31/2021,
gross accounts receivable totaled $500,000, and prior to recording
the adjusting entry to recognize bad debts expense for 2021, the
allowance for uncollectible accounts had a debit balance of
55,000.
Required:
1. What was the...
Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable.
Exercise 7-11 (Algo) Uncollectible accounts; allowance method vs. direct write-off method [LO7-5, 7-6) 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 $20,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $333,400, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible...
ohnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross...
ohnson 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
$30,000 at the beginning of 2021. No previously written-off
accounts receivable were reinstated during 2021. At 12/31/2021,
gross accounts receivable totaled $500,000, and prior to recording
the adjusting entry to recognize bad debts expense for 2021, the
allowance for uncollectible accounts had a debit balance of 55,000.
Required: 1. What was the...
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts...
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The balance of Accounts Receivable is $180,000. The company estimates that 5% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit...
Castle Company provides estimates for its uncollectible
accounts. The allowance for uncollectible accounts had a credit
balance of $17,780 at the beginning of 2021 and a $23,410 credit
balance at the end of 2021 (after adjusting entries). If the direct
write-off method had been used to account for uncollectible
accounts (bad debt expense equals actual write-offs), the income
statement for 2021 would have included bad debt expense of $18,100
and revenue of $3,200 from the collection of previously written off...
Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance...
Sunland Company uses the allowance method to estimate
uncollectible accounts receivable. The unadjusted balance in
Allowance for Doubtful Accounts is a debit of $5,000.
The company produced the following information from aging its
accounts receivable at year end. Complete the aging schedule and
calculate the total estimated uncollectible accounts.
Number of Days Outstanding
Total
0–30
31–60
61–90
91–120
Accounts receivable
$580,000
$330,000
$120,000
$80,000
$50,000
Estimated % uncollectible
2%
6%
10%
30%
Estimated uncollectible accounts
$
$
$
$
$...
QUESTION 39 Stargell had a credit balance of $5,360 in its allowance for uncollectible accounts at...
QUESTION 39
Stargell had a credit balance of $5,360 in its allowance for
uncollectible accounts at 1/1/20.
Based on past experience, 1% of gross accounts receivable have
been uncollectible. During the year, Stargell wrote off $6,660 of
accounts receivable. Gross accounts receivable at 12/31/20 is
$188,000.
What amount should reported as allowance for uncollectible accounts
in the year end balance sheet?
A.
580.
B.
$3,180.
C.
$7,240.
D.
$1,880.
Accounts receivable has a balance of $16,000 and the allowance for uncollectible accounts has a credit...
Accounts receivable has a balance of $16,000 and the allowance
for uncollectible accounts has a credit balance of $1,600. What is
net accounts receivable before and after a $60 account receivable
is written off?
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