Question

Prepare the current assets section of the balance sheet for Sheridan Company. Assume that in addition to the receivables it has cash of $91,900, inventory of $136,500, and prepaid insurance of $9,300.

Answer 1

Answer:

See explanation section

Explanation:

                            Sheridan Company

     Statement of Financial Position (Balance Sheet)

                       As at December 31, 2018

Particulars                                           Amount ($)

Cash                                                       $91,900

Accounts receivable      xxx,xxx

Less: Bad debt                 xx,xxx

                                                                xxx,xxx

Inventory                                                136,500

Prepaid Insurance                                     9,300

Total Current Assets                          $237,700

Note: If we have accounts receivables and bad debt expense, we can easily get the accurate answer.