Question
In: Accounting
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 accounts had a debit balance of 36,600.
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
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 $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...
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 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 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...
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...
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
$
$
$
$
$...
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?
A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a...
A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $30,000. An aging of accounts receivable at the end of the year indicates a required allowance of $38,000. If bad debt expense for the year was $40,000 and if credit sales for the year were $8,200,000 and $7,950,000 was collected from credit customers, what was the beginning-of-year balance in accounts receivable?
Ervin Company uses the allowance method to account for uncollectible accounts receivable
Ervin Company uses the allowance method to account for
uncollectible accounts receivable. Bad debt expense is established
as a percentage of credit sales. For 2021, net credit sales totaled
$5,900,000, and the estimated bad debt percentage is 1.50%. No
previously written-off accounts receivable were reinstated during
2021. The allowance for uncollectible accounts had a credit balance
of $56,000 at the beginning of 2021 and $47,000, after adjusting
entries, at the end of 2021.Required:1. What is bad debt expense for 2021...
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.)
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