Compute the uncollectible account expense and make the

Question

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

                                                                  Debit                        Credit

Sales (75% represent credit sales)                                          (credit)$1,152.000

Accounts Receivable                                 (debit) $288,000

Allowance for Doubtful Accounts                                              (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.