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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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?
Transcribed Image Text: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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