During its first year of operations, Kingbird, Inc. had credit sales of $3,875,000, of which $440,000 remained uncollected at year-end. The credit manager estimates that $18,900 of these receivables will become uncollectible.

(a)

Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

	Account Titles and Explanation	Debit	Credit
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(b)

Prepare the current assets section of the balance sheet for Kingbird, Inc., assuming that in addition to the receivables it has cash of $85,700, merchandise inventory of $176,100, and supplies of $12,400. (List Current Assets in order of liquidity)