Estimating Bad Debts from Receivables Balances Instructions Chart of Accounts General Journal Balance Sheet Analysis IFRS Instructions The following information is extracted from Shelton Corporation's accounting records at the beginning of 2016: Accounts Receivable S67,000 Allowance for Doubttul Accounts 1,300 (credit) During 2016, sales on credit amounted to $582,000, $552,800 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Sheiton's estimate of bad debt expense for 2016. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2016, balance sheet 3. Compute Sheiton's receivables turnover. (Round to one decimal place)

Estimating Bad Debts from Receivables Balances Instructions Chart of Accounts General Journal Balance Sheet Analysis IFRS Instructions The following information is extracted from Shelton Corporation's accounting records at the beginning of 2016: Accounts Receivable S67,000 Allowance for Doubttul Accounts 1,300 (credit) During 2016, sales on credit amounted to $582,000, $552,800 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Sheiton's estimate of bad debt expense for 2016. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2016, balance sheet 3. Compute Sheiton's receivables turnover. (Round to one decimal place)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

Estimating Bad Debts from Receivables Balances
Instructionss
Chart of Accounts
General Journal
Balance Sheet
Analysis
IFRS
Instructions
The following information is extracted from Shelton Corporation's accounting records at the beginning of 2016:
Accounts Receivable
$67,000
Allowance for Doubtful Accounts
1,300
(credit)
During 2016, sales on credit amounted to $582,000, $552,800 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts
receivable balance.
Required:
1. Prepare the journal entry necessary to record Shelton's estimate of bad debt expense for 2016.
2. Prepare the Accounts Receivable section of Shelton's December 31, 2016, balance sheet.
3. Compute Shelton's receivables turnover. (Round to one decimal place.)
4. If Sheldon uses IFRS, what might be the heading for the accounts receivable section
Requirement 2?

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Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.