Johnson Company uses the allowance method of accounting for uncollectible accoun

Sigchi4life
Category:
Accounting
Price: $5 USD

Question description

Johnson Company uses the allowance method of accounting for uncollectible accounts.  Johnson estimates that 3% of net credit sales will be uncollectible.  On January 1, 2010, the Allowance for Doubtful Accounts had a credit balance of $2,400.  During 2010, Johnson wrote-off accounts receivable totaling $1,800 and made credit sales of $120,000.  There were no Sales Returns or Sales Discounts during the year.  After the adjusting entry, the December 31, 2010, balance in the Bad Debt Expense would be 

a.

$7,200

b.

$3,000

c.

$3,600

d.

$1,200


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(Top Tutor) Daniel C.
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