During its first year of operations, Henley Company had credit sales of $3,050,000; $650,000 remained uncollected at year-end. The credit manager estimates that $40,000 of these receivables will become uncollectible. a) Prepare the journal entry to record the estimated uncollectible. b) Prepare the current assets section of the balance sheet for Henley Company. Assume that in addition to the receivables it has cash of $95,000, merchandise inventory of $135,000, and prepaid expenses of $8,000.

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 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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During its first year of operations, Henley Company had credit sales of $3,050,000;
$650,000 remained uncollected at year-end. The credit manager estimates that
$40,000 of these receivables will become uncollectible.
a) Prepare the journal entry to record the estimated uncollectible.
b) Prepare the current assets section of the balance sheet for Henley Company.
Assume that in addition to the receivables it has cash of $95,000, merchandise
inventory of $135,000, and prepaid expenses of $8,000.
Transcribed Image Text:During its first year of operations, Henley Company had credit sales of $3,050,000; $650,000 remained uncollected at year-end. The credit manager estimates that $40,000 of these receivables will become uncollectible. a) Prepare the journal entry to record the estimated uncollectible. b) Prepare the current assets section of the balance sheet for Henley Company. Assume that in addition to the receivables it has cash of $95,000, merchandise inventory of $135,000, and prepaid expenses of $8,000.
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