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

See explanation section

Step-by-step 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.