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The 2012 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances. 2012 2011 Credit sale $75,300 $61,500 Accounts receivable 9,400 9200 Allowance for doubtful accounts 1300 1000 Bad debt recoveries 55 70 Johnson estimates bad debts each year at 2 percent of credit sales. a. Compute the actual amount of write-offs during 2012.

The 2012 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances. 2012 2011 Credit sale $75,300 $61,500 Accounts receivable 9,400 9200 Allowance for doubtful accounts 1300 1000 Bad debt recoveries 55 70 Johnson estimates bad debts each year at 2 percent of credit sales. a. Compute the actual amount of write-offs during 2012.

FINANCIAL ACCOUNTING
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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The 2012 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances. 2012 2011 Credit sale $75,300 $61,500 Accounts receivable 9,400 9200 Allowance for doubtful accounts 1300 1000 Bad debt recoveries 55 70 Johnson estimates bad debts each year at 2 percent of credit sales. a. Compute the actual amount of write-offs during 2012.
Transcribed Image Text:The 2012 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances. 2012 2011 Credit sale $75,300 $61,500 Accounts receivable 9,400 9200 Allowance for doubtful accounts 1300 1000 Bad debt recoveries 55 70 Johnson estimates bad debts each year at 2 percent of credit sales. a. Compute the actual amount of write-offs during 2012.
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