During its first year of operations, Energy Company had credit sales of $3,000,000;

$600,000 remained uncollected at year-end. The credit manager estimates that $31,000 of On July 11, Kingston Inc. paid for the merchandise.

these receivables will become uncollectible.

(a) Prepare the journal entry to record the estimated uncollectibles.

Prepare entry for allowance method and partial balance sheet.

(LO 3, 9)

(b) Prepare the current assets section of the balance sheet for Energy Company. Assume that in addition to the receivables it has cash of $90,000, inventory of $118,000, and