Johnson Corporation’s Unadjusted Trial Balance
Question # 00534439
Posted By:
Updated on: 05/26/2017 03:34 AM Due on: 05/26/2017
Johnson Corporation’s Unadjusted Trial Balance at year-end included the following accounts:
Debit Sales (75% represent credit sales) Accounts Receivable Credit $1,152,000 $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:
Debit Sales (75% represent credit sales) Accounts Receivable Credit $1,152,000 $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.
allowance of $12,000 would be appropriate.
-
Rating:
/5
Solution: Johnson Corporation’s Unadjusted Trial Balance