The following information is extracted from Shelton Corporation's accounting records at the beginning of 2016:

Accounts Receivable$64,000Allowance for Doubtful Accounts1,300(credit)

During 2016, sales on credit amounted to $574,000, $551,800 was collected on outstanding receivables and $3,200 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?

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Chart of Accounts

CHART OF ACCOUNTSShelton CorporationGeneral LedgerASSETS111Cash121Accounts Receivable122Allowance for Doubtful Accounts141Inventory152Prepaid Insurance181Equipment198Accumulated Depreciation

LIABILITIES211Accounts Payable231Salaries Payable250Unearned Revenue261Income Taxes Payable

EQUITY311Common Stock331Retained Earnings

REVENUE411Sales Revenue

EXPENSES500Cost of Goods Sold511Insurance Expense512Utilities Expense521Salaries Expense532Bad Debt Expense540Interest Expense541Depreciation Expense559Miscellaneous Expenses910Income Tax Expense

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General Journal

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

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GENERAL JOURNAL

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DATEACCOUNT TITLEPOST. REF.DEBITCREDIT1

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