During its first year of operations, Company S had credit sales of 3,000,000; 600,000 remained uncollected at year-end. The credit manager estimates that 28,000 of these receivables will become uncollectible.

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

(b) Prepare the current assets section of the statement of financial position for the Company S . Assume that in addition to the receivables it has cash of 90,000, inventory of 118,000, and prepaid insurance of 7,500