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Problem - During its ?rst year of operations, Ivanhoe Company had credit sales of $2,781,600, of which $368,300 remained uncollected at year-end. The credit manager estimates that $19,340 of these receivables will become uncollectible.
Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.)
Prepare the current assets section of the balance sheet for Ivanhoe Company, assuming that in addition to the receivables it has cash of $81,950, merchandise inventory of $197,290, and supplies of $13,920.
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