Johnson company starts the year with $300,000 in A/R and records $1,000,000 in Net Credit sales during the year, of which 700,000 are collected. Allowance for Doubtful accounts has a beginning balance of $5,000. Write-Offs are $4,000 during the year, and $500 of previously written off were subsequently collected. Johnson estimated that 2% of ending A/R will not be collected (this will be the ending balance in Allowance for Doubtful Accounts.) (Use T accounts)

Required:

1. Record journal entries for write-offs, collections of prior write-offs and bad debt expense.

Answer rating: 100% (QA)

Journal Entries for Johnson Company 1 WriteOffs Date Account Debit Credit Description YearEnd Bad De... View the full answer