1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katen-ka-za [31]
2 years ago
8

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. T

he allowance for uncollectible accounts had a credit balance of $28,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $466,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 51,300. 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 wou
Business
1 answer:
Tju [1.3M]2 years ago
6 0

Answer:

1. What was the balance in gross accounts receivable as of 12/31/2020?

= allowance for doubtful accounts 2020 / 10% = $28,000 / 10% = $280,000

2. What journal entry should Johnson record to recognize bad debt expense for 2021?

Dr Bad debt expense (= 46,670 + 51,300) 97,970

    Cr Allowance for doubtful accounts 97,970

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.

= credit balance allowance for doubtful accounts January 1 + debit balance allowance for doubtful accounts December 31 = $28,000 + $51,300 = $79,300

4. If Johnson instead used the direct write-off method, what would the bad debt expense be

The bad debt expense would equal $79,300. The allowance for doubtful accounts is used as an estimate of future bad debt expense, while the direct write off method directly writes off bad debt as they occur.

Explanation:

beginning balance of allowance for doubtful accounts $28,000

gross accounts receivable $466,700 x 10% = $46,670 bad debt

before adjustments, the allowance for doubtful accounts had a debit balance of $51,300

You might be interested in
Which of the following statements concerning a bank savings account is false? a. Deposits are insured for at least $100,000. b.
cricket20 [7]

Answer:

The correct answer is C

Explanation:

Savings account is the kind of deposit account which is held at the retail bank and that pays the interest but cannot be use directly as money is at the narrow sense of the medium of exchange.

This account help the customers or people to set aside the portion of their liquid assets when earning a monetary return. And this account does not charge any fee for depositing as well as cashing the paycheck into the saving account.

Therefore, the statement which is false is that the customer have to pay a fee for depositing or cashing.

6 0
3 years ago
How does the value of the cars produced by the Japanese company within the United States impact the United States' Gross Nationa
Svetllana [295]

Answer:

:)

Explanation:

The cars it produces in the U.S. are added to U.S. GDP, but not U.S. GNP, as these cars use domestic factors of production (labor and resources), but are produced by a foreign nation. Conversely, the values are added to Japan's GNP, but not Japan's GDP.

6 0
2 years ago
Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the N
Andrew [12]

Answer:

Alphabet stock; Acme Investing; New York Stock Exchange.

Explanation:

Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, Alphabet stock is a financial instrument, Acme Investing is a financial institution, and New York Stock Exchange represents a financial market.

Financial instruments can be defined as assets which are having monetary value or used to record a monetary transaction. Financial instruments are generally classified on the basis of their risks, maturity, issuers etc. Some examples of financial instruments are stocks, treasury bills, commercial paper, money market mutual fund, certificate of deposits, corporate bonds etc. The market where these financial instruments (securities and derivatives) are being traded at a low transaction rate is referred to as the financial market.

Furthermore, financial institutions can be defined as a business firm or company that is involved in the business of trading financial instruments.

6 0
3 years ago
Which of the following refers to how hard it is to get accepted or get into a 4 year college?
IceJOKER [234]
A=<span>is an expression of the ease with which alternating current flows through a complex circuit or system.
B=</span><span>Student–teacher ratio or student–faculty ratio is the number of students who attend a school or university divided by the number of teachers in the institution
so the answer will be B
hope this helps.
</span>
7 0
3 years ago
During Year 1, Hardy Merchandising Company purchased $20,000 of inventory on account. Hardy sold inventory on account that cost
mel-nik [20]

Answer:

[b] = $ 2500

[c] = $ 7500

[d] =  Gross margin = 22500 – 15000 = $ 7500

   Net Income = 7500 – 4000 = $ 3500

[e] = $ 3500

Explanation:

Here the solution is given as follows,

3 0
2 years ago
Other questions:
  • An individual actually earned a 4 percent nominal return last year. Prices went up by 3 percent over the year. Given that the in
    9·1 answer
  • Brief Exercise 199 At December 31, 2022, the following information (in thousands) was available for Ayayai Inc.: ending inventor
    14·1 answer
  • The cost of capital: a. is the price of borrowing money, which is the rate of return that borrowers must pay investors. b. tends
    8·1 answer
  • A donor gave $75,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith,
    8·1 answer
  • A monopoly firm is the only seller of a good or service that A) does not need to be advertised. B) has no close complements C) d
    13·1 answer
  • What is a benefit of obtaining a personal loan?
    10·1 answer
  • Suppose that Cambodia becomes the next popular tourist destination. You notice that hotels, restaurants, and other services cost
    7·1 answer
  • How to get a series 7 license
    7·1 answer
  • Advertising a home for sale in a minority area exclusively in a paper aimed at that minority group would most likely be regarded
    14·1 answer
  • True or false: unless demand is perfectly elastic or perfectly inelastic, whether a tax is levied on buyers or on sellers, the c
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!