Prepare entry for estimated uncollectables and classications, and calculate ratios. LO8, 9, 10 During its first year of operations, Wendy Ltd had credit sales of $3 million, of which $600000 remained uncollected at year-end. The credit manager estimates that $40000 of these receivables will become uncollectable. (a) Prepare the journal entry to record the estimated uncollectables. (Assume the allowance account has an unadjusted balance of nil.) (b) PreparethecurrentassetssectionofthestatementoffinancialpositionforWendyLtd,assuming that in addition to the receivables it has cash of $90000, inventory of $130000, and prepaid expenses of $13000. (c) Calculate the credit risk ratio, receivables turnover, and average collection period. Assume that average net receivables were $530000.