81k+51k = 132k. This is the amount without the adjusting entries.
Then after adjustment it tells us the amount is 44.5k
so 132,000-x=44,500
or 87500 written down due to the adjusting entries.
These college level questions almost always give you only all the information you need, almost never is information given as just a red herring. So if they give you 5,400,000 you can bet you're going to need to use it in some way.
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 $5,400,000, and the estimated bad debt percentage is 1.50%. The allowance for uncollectible accounts had a credit balance of $51,000 at the beginning of 2013 and $44,500, after adjusting entries, at the end of 2013.
I thought the amount written off would just be $6,500, but that answer isn't correct. What is the correct answer, and how do you get to that number so I can know for future reference?
