he following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016: Accounts Receivable $63,000 Allowance for Doubtful Accounts 1,400 (credit) During 2016, sales on credit amounted to $575,000, $557,400 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 in Requirement 2?
he following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016: Accounts Receivable $63,000 Allowance for Doubtful Accounts 1,400 (credit) During 2016, sales on credit amounted to $575,000, $557,400 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 in Requirement 2?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016:
| $63,000 | ||
| Allowance for Doubtful Accounts | 1,400 | (credit) |
During 2016, sales on credit amounted to $575,000, $557,400 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 |
| 2. | Prepare the Accounts Receivable section of Shelton’s December 31, 2016, |
| 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 in Requirement 2? |
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