Refer to the data in BE8-5 for Gourdeau Co. (a) Assuming the allowance for doubtful accounts has

Question:

Refer to the data in BE8-5 for Gourdeau Co.
(a) Assuming the allowance for doubtful accounts has an unadjusted credit balance of $4,500 at December 31, what is the bad debt expense for the year?
(b) Prepare the current assets section of the for Gourdeau Co. Assume that, in addition to the receivables, it has cash of $90,000, merchandise inventory of $130,000, and prepaid insurance of $7,500.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...