Reference no: EM132604580

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

Question 1: Compute the uncollectible account expense, and make the journal entry, for the current year assuming the uncollectible account expense is determined as follows:

a. Without considering the balance in the Allowance for Doubtful Accounts, income statement approach, 1% of total sales.

b. Without considering the balance in the Allowance for Doubtful Accounts, income statement approach, 1.5% of credit sales.

c. Considering the balance in the Allowance for Doubtful Accounts, balance sheet approach. The estimate based on an aging of accounts receivable is that an allowance of $12,000 would be appropriate.