Answer:
1. $100,000
2. 2021
Dr Bad debt expense $34,970
Cr Allowance for uncollectible account $34,970
3. $28,300
4. $28,300
Explanation:
1. Calculation for What was the balance in gross accounts receivable as of 12/31/2020
Balance in gross accounts receivable as of 12/31/2020=$10,000/ 10%
Balance in gross accounts receivable as of 12/31/2020 = $100,000
Therefore the balance in gross accounts receivable as of 12/31/2020 will be $100,000
2. Preparation of the journal entry that Johnson should record to recognize bad debt expense for 2021
2021
Dr Bad debt expense $34,970
Cr Allowance for uncollectible account $34,970
(10%*$166,700 + $18,300)
3. Calculation to Determine the amount of accounts receivable written off during 2021
2021 Accounts receivable written off = $10,000 - (-$18,300)
2021 Accounts receivable written off= $28,300
Therefore the amount of accounts receivable written off during 2021 will be $28,300
4. In a situation where Johnson used the direct write-off method, what would bad debt expense be for 2021 will be $28,300 calculated as : [$10,000 - (-$18,300) ]
=$28,300
Therefore the Bad debt expense under direct write off method will be $28,300
