- Home >
- Business Finance >
- Johnson Company uses the allowance method of accounting for uncollectible accoun
Johnson Company uses the allowance method of accounting for uncollectible accoun
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 |
This question has not been answered.
Create a free account to get help with this and any other question!
Similar Content
Studypool values your privacy. Only questions posted as Public are visible on our website.
Brown University
1271 Tutors
California Institute of Technology
2131 Tutors
Carnegie Mellon University
982 Tutors
Columbia University
1256 Tutors
Dartmouth University
2113 Tutors
Emory University
2279 Tutors
Harvard University
599 Tutors
Massachusetts Institute of Technology
2319 Tutors
New York University
1645 Tutors
Notre Dam University
1911 Tutors
Oklahoma University
2122 Tutors
Pennsylvania State University
932 Tutors
Princeton University
1211 Tutors
Stanford University
983 Tutors
University of California
1282 Tutors
Oxford University
123 Tutors
Yale University
2325 Tutors