Johnson Corporation S Unadjusted Trial Balance At Year End Included The Followin

Johnson Corporation’s Unadjusted Trial Balance at year-end included the following accounts:

Sales (75% represent credit sales)    Debit     Credit $1,152,000

Accounts Receivable           Debit  $288,000          Credit

Allowance for Doubtful Accounts   Debit               Credit  $2,184

Compute the uncollectible account expense, and make the appropriate journal entry, for the current year assuming the uncollectible account expense is determined as follows:

  • a. Income statement approach, 1% of total sales.
  • b. Income statement approach, 1.5% of credit sales.
  • c. Balance sheet approach. The estimate based on an aging of accounts receivable is that an allowance of $12,000 would be appropriate.

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