Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. how is the answer b? 38. the following infor

How is the answer B? 38. The following information...

70.2K

Verified Solution

Question

Accounting

How is the answer B?

image

38. The following information relates to the operations of Johnson, Inc.: Accounts Receivable, gross on 12/31/2014 Accounts Receivable, gross on 12/31/2013 Allowance for Doubtful Accounts on 12/31/2013 $200,000 $180,000 $ 8,000 During 2014 Sales Revenue : $4,000,000: 75% of all sales are made on account. A/R written off $115,000 Assume Johnson uses the percentage of credit sales (i.e., income statement) approach to calculate bad debt expense and allowance for doubtful accounts. The controller estimates that the firm will not collect 4% of 2014 sales made on account. What is the firm's allowance for doubtful accounts balance as of 12/31/2014: A) $ 3,000 B) 13,000 C) $120,000 D) $123,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students