Instructions General Journal 1. Prepare the journal entry necessary to record Shelton's estimate of bad debt expense on December 31. The following information is extracted from Shelton Corporation's accounting records at the beginning of 2019: Chart of Accounts Accounts Receivable $71.000 General koumal instructions CHART OF ACсоUNTS Allowance for Doubtlul Accounts 1,200 (credit) Shelton Corporation PAGE 1 During 2019, sales on credit amounted to $568.000, S553,600 was collected on outstanding receivables and $2,600 of receivables were written General Ledger off as uncollectible. On December 31, 2019, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. GENERAL JOURNAL ASSETS REVENUE DATE ACCOUNT TITLE POST RE DEBIT CREDIT Required: 111 Cash 411 Sales Revenue 1. Prepare the joumal entry necessary to record Shelton's estimate of bad debt expense for 2019. 121 Accounts Receivable 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019, balance sheet. 122 Allowance for Doubtul EXPENSES 3. Compute Shelton's receivables tumover. 4. Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 27 Accounts 500 Cost of Goods Sold 141 Inventory 511 Insurance Expense 152 Prepaid Insurance 512 Uities Expense IFRS Balance Sheet Analysis 181 Equipment 521 Salaries Expense 198 Accumulated Depreciation 532 Bad Debt Expense 4. Sheldon uses IFRS, what might be the heading for the accounts Ralance Sheet Instroution 540 Interest Expense 3. Compute Sheiton's receivables tumover. receivable section in Requirement 27 LIABILITIES 541 Depreciation Expense Check all that apply 211 Accounts Payable 559 Miscellaneous SHELTON'S CORPORATION Additional Instruction 231 Salaries Payable Expenses Partial Balance Sheet Shelton's receivable tumover is O Available lor-Sale Securities 250 Unearned Revenue 910 Income Tax Expense December 31, 2019 261 Income Taxes Payable O Loans and Receivables Accounts Receivable 2 Allowance for Doubeful Accounts O Accounts Receivable EQUITY 311 Common Stock 5 Net Accounts Receivable O Customer Accounts 331 Retained Eamings
Instructions General Journal 1. Prepare the journal entry necessary to record Shelton's estimate of bad debt expense on December 31. The following information is extracted from Shelton Corporation's accounting records at the beginning of 2019: Chart of Accounts Accounts Receivable $71.000 General koumal instructions CHART OF ACсоUNTS Allowance for Doubtlul Accounts 1,200 (credit) Shelton Corporation PAGE 1 During 2019, sales on credit amounted to $568.000, S553,600 was collected on outstanding receivables and $2,600 of receivables were written General Ledger off as uncollectible. On December 31, 2019, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. GENERAL JOURNAL ASSETS REVENUE DATE ACCOUNT TITLE POST RE DEBIT CREDIT Required: 111 Cash 411 Sales Revenue 1. Prepare the joumal entry necessary to record Shelton's estimate of bad debt expense for 2019. 121 Accounts Receivable 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019, balance sheet. 122 Allowance for Doubtul EXPENSES 3. Compute Shelton's receivables tumover. 4. Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 27 Accounts 500 Cost of Goods Sold 141 Inventory 511 Insurance Expense 152 Prepaid Insurance 512 Uities Expense IFRS Balance Sheet Analysis 181 Equipment 521 Salaries Expense 198 Accumulated Depreciation 532 Bad Debt Expense 4. Sheldon uses IFRS, what might be the heading for the accounts Ralance Sheet Instroution 540 Interest Expense 3. Compute Sheiton's receivables tumover. receivable section in Requirement 27 LIABILITIES 541 Depreciation Expense Check all that apply 211 Accounts Payable 559 Miscellaneous SHELTON'S CORPORATION Additional Instruction 231 Salaries Payable Expenses Partial Balance Sheet Shelton's receivable tumover is O Available lor-Sale Securities 250 Unearned Revenue 910 Income Tax Expense December 31, 2019 261 Income Taxes Payable O Loans and Receivables Accounts Receivable 2 Allowance for Doubeful Accounts O Accounts Receivable EQUITY 311 Common Stock 5 Net Accounts Receivable O Customer Accounts 331 Retained Eamings
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 9E: Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton...
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