The following information is extracted from Sheldon Corporation's accounting records at the beginning of 2019. Accounts...
The following information is extracted from Sheldon Corporation's accounting records at the beginning of 2019.
Accounts Receivable $63000
Allowance for Doubtful Accounts 1400 (credit)
During 2019, sales of credit amounted to $575000 collections on outstanding receivables were $557400 and $2600 of receivables were written off as uncollectible. On December 31, 2019, Sheldon estimates its bad debt to be 4% of the outstanding accounts receivable.
Instructions:
a. Determine the balance in Accounts Receivable at December 31, 2019
b. Prepare the adjusting entry to record Sheldon's bad debt expense for 2019.
c. Prepare the Accounts Receivable section of Shelton's balance sheet at December 31, 2019
d. Compute Shelton's Accounts Receivable turnover and average days collection of receivables
Homework Answers
a) Balance in Account receivable = 63000+575000-557400-2600 = 78000
b) Adjusting entry = (78000*4%)-(1400-2600) = 4320
c) Balance sheet
| Current assets | ||
| Account receivable | 78000 | |
| Less: Allowance for doubtful accounts | -3120 | 74880 |
d) Account receivable turnover = 575000/68240 = 8.43
Average days collection = 365/8.43 = 43.30 Days
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The following information is extracted from Sheldon
Corporation's accounting records at the beginning of 2019.
Accounts...
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Can anyone help me figure this out? I have tried and tried and do not understand!!!...
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The desired balance in the allowance account is 3,312. I did figure
that out.
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Can anyone help me figure this out? I have tried and tried and
do not understand!!! I posted the instructions which I followed.
The desired balance in the allowance account is 3,312. I did figure
that out.
The following information is extracted from Shelton Corporation's 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...
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On January 1, 2019, Smith, Inc., has the following balances for
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Accounts Receivable
$376,000
Allowance for Doubtful Accounts (a credit balance)
4,200
During 2019, Smith had $2,860,000 of credit sales, collected
$2,905,000 of accounts receivable, and wrote off $3,850 of accounts
receivable as uncollectible. At year end, Smith performs an aging
of its accounts receivable balance and estimates that $3,800 will
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