Johnson Corporation’s Unadjusted Trial Balance at year-end included the following accounts:
Question # 00315336
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Updated on: 06/11/2016 12:50 AM Due on: 07/11/2016
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.
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.
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Rating:
/5
Solution: Johnson Corporation’s Unadjusted Trial Balance at year-end included the following accounts: