Solution-Compute the uncollectible account expense

Compute the uncollectible account expense

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Reference no: EM132063771

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.

Reference no: EM132063771

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Compute the uncollectible account expense

Reference no: EM132063771

Reference no: EM132063771

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