At December 31, 2021, Nicholay Industries reports the following selected accounts from the unadjusted trial balance for

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At December 31, 2021, Nicholay Industries reports the following selected accounts from the unadjusted trial balance for its fi rst year of operations:

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Instructions

a. Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible.

b. Prepare the current assets section of the balance sheet for Nicholay Industries on December 31, 2021.

c. Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business.)

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...
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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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