A. During its first year of operations, Ivanhoe Company had credit sales of $3,230,600; $611,600 remained uncollected at year-end. The credit manager estimates that $43,200 of these receivables will become uncollectible. Prepare the current assets section of the balance sheet for Ivanhoe Company. Assume that in addition to the receivables it has cash of $91,800, inventory of $134,700, and prepaid insurance of $9,700. (List Current Assets in order of liquidity.)

B. On March 3, Kitselman Appliances sells $705,900 of its receivables to Sheridan Inc. Sheridan assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the current assets section of the balance sheet for Ivanhoe Company. Assume that in addition to the receivables it has cash of $91,800, inventory of $134,700, and prepaid insurance of $9,700. (List Current Assets in order of liquidity.) IVANHOE COMPANY Balance Sheet (Partial) Current Assets 91800 Cash 611600 Accounts Receivable Less : 43200 568400 Allowance for Doubtful Accounts Inventory 134700 9700 Prepaid Insurance Total Current Assets Open Show Work Click if you would like to Show Work for this question: v (a) On March 3, Kitselman Appliances sells $705,900 of its receivables to Sheridan Inc. Sheridan assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Mar. 3 Open Show Work Click if you would like to Show Work for this