Method to account for uncollectible accounts receivable

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Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2013, net credit sales totaled $5,800,000, and the estimated bad debt percentage is 1.40%. The allowance for uncollectible accounts had a credit balance of $55,000 at the beginning of 2013 and $46,500, after adjusting entries, at the end of 2013. Required: 1. What is bad debt expense for 2013? 2. Determine the amount of accounts receivable written off during 2013. 3. If the company uses the direct write-off method, what would bad debt expense be for 2013?

Reference no: EM13749190

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