Question - Johnson Corporation's Unadjusted Trial Balance at year-end included the following accounts:
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Debit
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Credit
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Sales (75% represent credit sales)
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$1,152,000
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Accounts Receivable
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$288,000
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Allowance for Doubtful Accounts
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$2,184
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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.