Answer:
A. $130,000
B. 2021
Dr Bad debt expense 45,470
Cr Allowance for uncollectible account 45,470
C. $36,800
D. $36,800
Explanation:
A. Calculation to determine What was the balance in gross accounts receivable as of 12/31/2020
Gross accounts receivable as of 12/31/2020 = $13000/ 10%
Gross accounts receivable as of 12/31/2020= $130,000
B. Preparation of the journal entry that Johnson should record to recognize bad debt expense for 2021
2021
Dr Bad debt expense ($216,700*10% + 23,800) 45,470
Cr Allowance for uncollectible account 45,470
C. Calculation to Determine the amount of accounts receivable written off during 2021.
Accounts receivable written off = $13000 - (-$23,800)
Accounts receivable written off= $36,800
D. Based on the information given in a situation were Johnson used the direct write of method, what would bad debt expense be for 2021 is $36,800