The following information is extracted from Shelton Corporations accounting records at the beginning of 2016:

Accounts Receivable	$71,000
Allowance for Doubtful Accounts	1,200	(credit)

During 2016, sales on credit amounted to $568,000, $553,600 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 Sheltons estimate of bad debt expense for 2016.
2.	Prepare the Accounts Receivable section of Sheltons December 31, 2016, balance sheet.
3.	Compute Sheltons 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?

Prepare the journal entry necessary to record Sheltons estimate of bad debt expense on December 31.

PAGE 9

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2

Prepare the Accounts Receivable section of Sheltons December 31, 2016, balance sheet.

Score: 0/11

Shelton Corporation

Partial Balance Sheet

December 31, 2016

1	Accounts Receivable.
2
3

Compute Sheltons receivables turnover. (Round to one decimal place.)

Sheltons receivable turnover is

.