The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2019: Accounts Receivable $67,000   Allowance for Doubtful Accounts 1,300 (credit)   During 2019, 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, 2019, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance.   What would be the bad debt expense and the formula to find it?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2019:
Accounts Receivable $67,000  
Allowance for Doubtful Accounts 1,300 (credit)
 
During 2019, 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, 2019, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance.
 
What would be the bad debt expense and the formula to find it?
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