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

	ASSETS
111	Cash
121	Accounts Receivable
122	Allowance for Doubtful Accounts
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

General Journal

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2

Question not attempted.

Score: 0/11

SHELTONS CORPORATION

Partial Balance Sheet

December 31, 2019

1	Accounts Receivable
2	Allowance for Doubtful Accounts
3	Net Accounts Receivable

Sheltons receivable turnover is ________________ .