Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established

Question:

Johnson Company uses the allowance method to account for uncollectible Bad debt expense is established as a percentage of credit sales. For 2011, net credit sales totaled $4,500,000, and the estimated bad debt percentage is 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2011 and $40,000, after adjusting entries, at the end of 2011.

Required:
1. What is bad debt expense for 2011?
2. Determine the amount of written off during 2011.
3. If the company uses the direct write-off method, what would bad debt expense be for 2011?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...