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10 August, 21:44

Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $13,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $216,800, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 23,800. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020

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  1. 10 August, 21:54
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    The balance in gross accounts receivable as of 12/31/2020 is $260,000

    Explanation:

    In order to calculate the balance in gross accounts receivable as of 12/31/2020 we would have to make the following calculation:

    Gross accounts Receivable at 12/31/2020 = Allowance Account balance at beginning / 10%

    Allowance Account balance at beginning=$13,000

    Therefore, Gross accounts Receivable at 12/31/2020=$13,000 / 5%

    Gross accounts Receivable at 12/31/2020=$260,000

    The balance in gross accounts receivable as of 12/31/2020 is $260,000
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