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The 2019 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year...

The 2019 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances.The 2019 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances.

2019

2018

Credit Sales

$130,000

$125,000

Accounts Receivable

87,000

77,000

Allowance for Doubtful Accounts

32,000

26,500

Bad Debt Recoveries

400

320

Johnson estimates bad debts each year at 4 percent of credit sales.

  1. Compute the actual amount of write-offs during 2019. (5 Points)
  1. Infer the journal entries that explain the activity in accounts receivable and the related allowance account during 2019. (10 Points)
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