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
$22,000 at the beginning of 2021. No previously written-off
accounts receivable were reinstated during 2021. At 12/31/2021,
gross accounts receivable totaled $366,700, and prior to recording
the adjusting entry to recognize bad debts expense for 2021, the
allowance for uncollectible accounts had a debit balance of
40,300.
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. 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?
What was the balance in gross accounts receivable as of
12/31/2020?
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| Balance in gross accounts
receivable |
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Journal entry worksheet
- Record the entry to recognize bad debt expense for 2021.
Note: Enter debits before credits.
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| Year |
General Journal |
Debit |
Credit |
| 2021 |
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| Amount of accounts receivable written
off |
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| Bad debt expense for 2021 |
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