During its first year of operations, Henley Company had credit sales of $3,303,126; $601,306 remained uncollected at year-end. The credit manager estimates that $38,860 of these receivables will become uncollectible.
1) Prepare the journal entry to record the estimated uncollectibles.
2) Prepare the current assets section of the balance sheet for Henley Company. Assume that in addition to the receivables it has cash of $94,419, merchandise inventory of $132,274 and prepaid expenses of $8,833.