iPad 7:15 PM @59%. Brief Exercise 8-9 (Part Level Submission) During its first y

Question

iPad 7:15 PM @59%. Brief Exercise 8-9 (Part Level Submission) During its first year of operations, Gehrig Company had credit sales of $3,000,000, of which $400,000 remainecd uncollected at year-end. The credit manager estimates that $18,000 of these receivables will become uncollectible. Chapter 8 HW Fall17 Brief Exercise 8-7 rief Exercise 8-9 (a) Your answer is correct. Exercise 8-9 Exercise 8-11 (Part Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Objective Bad Debt Expense 18000 Allowance for Doubtful 18000 Attempts: 2 of 3 used (b) Your answer is partially correct. Try again. Prepare the current assets section of the balance sheet for Gehrig Company, assuming that in addition to the receivables it has cash of $90,000, merchandise inventory of $180,000, and supplies of $13,000. (List current assets in order of liquidity) GEHRIG COMPANY Balance Sheet (partial) December 31, 2010 Current Assets Cash 90000

Explanation / Answer

ans b Balance Sheet (Partial) Current Assets Cash $90,000 Accounts Receivable 400000 Less: Allowance for Doubtful debts 18000 382000 Mercandise Inventory 180000 Supplies 13000 Total Current Assets $665,000

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