Description of this paper

Compute the uncollectible account expense, and make the appropriate journal entr

Description

solution


Question

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.

 

Paper#23836 | Written in 18-Jul-2015

Price : $27
SiteLock