Johnson Company caleulates its allowance for uncollectible'accounts as 10% of its ending balance in gross accounts recelvable. Theallowance for uncollectible accounts had a credit balance of $12.000 at the beginning of 2021 No previously written-off accountsreceivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totnled $200,100, and prior to recording theadjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 22,000.Required:1. What was the balance in gross accounts receivable as of 12/31/2020?2. What journal entry should Johnson record to recognize bed debt expense for 2021?3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount ofaccounts receivable written off during 2021.4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?

Bad debt expense for 2021 = (Gross accounts receivable x 10%) + Debit balance of allowance for…

Answered: Johnson Company caleulates its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress On December 31, 2021, the Allowance for Doubtful Accounts has an unadjusted debit balance of $1,020. Lawn Corporation estimates that 10% of its total accounts receivable balance of $94,700 will become uncollectible and records the necessary adjustment to the Allowance for Doubtful Accounts. On May 11, 2022, Lawn Corporation determined a J. Reno's account was uncollectible and wrote off $1,570. On June 12, 2022, Reno paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To reverse write-off of account receivable) (To record recovery of uncollectible amount)
At January 1, 2024, ABC Company reported an allowance for bad debts with a $7,190 credit balance. During 2024, ABC wrote-off as uncollectible accounts receivable totaling $12,530. At December 31, 2024, ABC Company had accounts receivable totaling $325,000 and prepared the following aging schedule: Accounts Receivable not past due 1-39 days past due 40-79 days past due 80-119 days past due over 119 days past due total $167,000 $ 52,000 $ 69,000 $ 26,000 $ 11,000 $325,000 % Uncollectible 2% 8% 14% 22% 45% Calculate the amount of bad debt expense recorded by ABC Company for 2024.
Before year-end adjusting entries, VKS Company's account balances at December 31, 2021, for accounts receivable and the related allowance for uncollectible accounts were P500,000 and P45,000, respectively. An aging of accounts receivable indicated that P62,500 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?
Ivanhoe Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 8% of receivables will eventually be uncollectible. Selected account balances at December 31, 2019, and December 31, 2020, appear below: Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts (a) Nov. 15 Date Aug. 10 Record the following events in 2020. The given balance in the Accounts Receivable account at December 31, 2020 reflects the 2020 transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Sept. 12 12/31/19 $324,000 Aug. 10 Determined that the account of L. Young for $648 is uncollectible. Sept. 12 Determined that the account of J. E. Ford for $3,672 is uncollectible. Oct. 10 Received a check for $432 as payment on account from L. Young, whose account had previously been written off…
Meme Company’s allowance for doubtful accounts had a credit balance of P110,000 at December 31, 2019. Meme accrues doubtful accounts expense for 2020 amounting to P48,000 based on sales. During 2020, Meme write off accounts totaling P90,000. The aging of accounts receivable indicated that a P345,000 allowance for doubtful accounts was required at December 31, 2020. What amount of doubtful accounts expense should be reported for 2020? a. P 48,000 c. P193,000 b. P277,000 d. P325,000
On December 31, 2021, Vaden Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: Accounts receivable $350,000 Allowance for doubtful accounts 400 (credit balance) Sales revenue (all credit sales) 1,050,000 Required: Prepare the necessary year-end adjusting entry to estimate bad debt expense for each of the following independent assumptions: Accounts Receivable is aged into three categories – Current $210,000, 30 – 60 days past due - $80,000 and >60 days past due - $60,000. Additionally, the amount uncollectible for each category is 5% for current, 10% for 30-60 days and 25% for > 60 days. It is estimated that 2% of credit sales for the year will prove to be uncollectible.
Find the amount of accounts receivables written off in 2019.
Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2021: Mar. 17 Accounts receivable of $3,600 were written off as uncollectible. The company uses the allowance method. 38 Loaned an officer of the company $42,009 and received a note requiring principal and interest at 5% to be paid on March 30, 2022. Hay 30 Discounted the $42,eee note at a local bank. The bank's discount rate is 6%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $31,8ea. Terms of the sale are 2/10, n/30. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. Aug. 31 Sold stock in a nonpublic company with a book value of $6,900 and accepted a $7,900 noninterest-bearing note with a discount rate of 6%. The $7,980 payment is due on February 28, 2022. The stock has no ready market value. Dec. 31…
Percent of accounts receivable method At each calendar year-end, Futaim Electric Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2019, it has outstanding accounts receivable of AED310,000, and it estimates that 2.5% will be uncollectible. Required: Prepare the adjusting entry to record bad debts expense for year 2019 under the assumption that the Allowance for Doubtful Accounts has (a) a AED2,400 credit balance before the adjustment and (b) a AED1,800 debit balance before the adjustment.
es Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $85,000, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,445 credit balance before the adjustment. (b) a $425 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,445 credit balance before the adjustment. Note: Enter debits before credits. Transaction (a) Record entry General Journal Clear entry Debit Credit View general journal 7
Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. It has just completed an aging analysis of accounts receivable at December 31, 2019. This analysis disclosed the following information: Age Group Total Percentage Considered Uncollectible Not Yet Due 1 - 30 days past due $52,000 $32,000 $13,000 1% 2% 8% 31 - 60 days past due What is the appropriate balance for Oceanside's Allowance for Impairment at December 31, 2019 O A. $1,560 O B. $2,160 O C, 2% of credit sales in 2019 O D. $95,000
How much is the adjusted balance of the allowance for doubtful accounts as of December 31, 2016?

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