The following information is extracted from Shelton Corporations accounting records at the beginning of 2019: Accounts Receivable
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Question:
The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2019:
Accounts Receivable | $78,000 | |
Allowance for Doubtful Accounts | 1,300 | (credit) |
During 2019, sales on credit amounted to $588,000, $550,400 was collected on outstanding receivables and $3,200 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 Shelton’s estimate of bad debt expense for 2019. |
2. | Prepare the Accounts Receivable section of Shelton’s December 31, 2019, balance sheet. |
3. | Compute Shelton’s receivables turnover. |
4. | If Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2? |
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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