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