Question
The following information is extracted from Shelton Corporations accounting records at the beginning of 2019: Accounts Receivable $71,000 Allowance for Doubtful Accounts 1,200 (credit) During
The following information is extracted from Shelton Corporations accounting records at the beginning of 2019:
Accounts Receivable | $71,000 | |
Allowance for Doubtful Accounts | 1,200 | (credit) |
During 2019, 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, 2019, 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 2019. |
2. | Prepare the Accounts Receivable section of Sheltons December 31, 2019, balance sheet. |
3. | Compute Sheltons receivables turnover. |
4. | If Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2? |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shelton Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Journal
DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
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1 |
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2 |
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Question not attempted.
Score: 0/11
SHELTONS CORPORATION |
Partial Balance Sheet |
December 31, 2019 |
1 | Accounts Receivable |
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2 | Allowance for Doubtful Accounts |
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3 | Net Accounts Receivable |
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Sheltons receivable turnover is ________________ .
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