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Business, 02.12.2019 21:31 TheOriginalMeyah

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 $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 2013 and $40,000, 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?

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