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

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ohnson Company calculates its allowance for uncollectibleaccounts as 10% of its ending balance in gross accounts receivable.The allowance for uncollectible accounts had a credit balance of$30,000 at the beginning of 2021. No previously written-offaccounts receivable were reinstated during 2021. At 12/31/2021,gross accounts receivable totaled $500,000, and prior to recordingthe adjusting entry to recognize bad debts expense for 2021, theallowance for uncollectible accounts had a debit balance of 55,000.Required: 1. What was the balance in gross accounts receivable asof 12/31/2020? 2. What journal entry should Johnson record torecognize bad debt expense for 2021? 3. Assume Johnson made noother adjustment of the allowance for uncollectible accounts during2021. Determine the amount of accounts receivable written offduring 2021. 4. If Johnson instead used the direct write-offmethod, what would bad debt expense be for 2021?

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Answer 1 The balance in gross accounts receivable as of 31122020 Allowance for uncollectible accounts at the beginning of 2021 Allowance for Uncollectible The balance in gross accounts receivable as of 31122020 See Answer

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