Direct write-off method problem

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Reference no: EM13144172

Johnson Company uses the allowance method to account for uncollectible accounts receivable. 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.

A. What is bad debt expense for 2011?

B. Determine the amount of accounts receivable writted off during 2011.

C. If the company uses the direct write-off method, what would bad debt expense be for 2011?

Reference no: EM13144172

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