Test Your Skills 1. Sean Kilpatrick owns the Santos Charcuterie and Bakery. He is assembling a summary of the current asset portion of his balance sheet and has determined the accuracy of the following account balances. Santos Charcuterie and Bakery Account Account Balance ($) Accounts Receivable: House Accounts 6,200 Allowance for Doubtful House Accounts 1,500 Accounts Receivable: Credit Cards 12,300 Cashiers Banks 5,000 Cash on Deposit in Local Bank 80,200 Food Inventory 17,850 Paper and Supplies Inventory 5,175 Prepaid Expenses 27,950 Use the information he has assembled to determine the proper current assets account balances, listed in their proper order of liquidity, to help Sean determine the total value of his current assets, and then answer the questions that follow. Santos Charcuterie and Bakery Current Assets Cash Accounts Receivable Net Inventories Prepaid Expenses Total Current Assets a. Why must Sean address the issue of allowances for doubtful house accounts if he is to accurately calculate his total current assets? b. What are two examples of prepaid expenses Sean may have incurred and thus must address if he is to accurately calculate his total current assets