At December 31, 2021, Sheridan Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations: Account Debit Credit Accounts receivable $770,000 Accounts payable $385,000 Cash 44,000 Cost of goods sold 1,925,000 Interest receivable 1,250 Interest revenue 2,475 Merchandise inventory 357,500 Notes receivable, due April 10, 2022 49,500 Prepaid insurance 8,800 Refund liability 65,000 Short-term investments 55,000 Sales 3,113,000 Sales returns and allowances 110,000 Unearned revenue 27,500

1.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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2.Prepare the current assets section of the balance sheet for Sheridan Industries on December 31, 2021. (List Current Assets in order of liquidity. Enter account name only and do not provide descriptive information.) 3.Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business.) (Round answers to 1 decimal place, e.g. 52.7. Use 365 days for calculation.)

Receivables turnover		enter Receivables turnover in times rounded to 1 decimal place	times
Average collection period		enter Average collection period in days rounded to 1 decimal place	days