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    An Entity Reported Current Receivables On December 31

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    pompom
    The document reports an entity's current receivables on December 31, 2015, which include trade accounts receivable of $930,000, allowance for uncollectible accounts of -$20,000, and a claim against a shipper for $30,000. Unsold consigned goods valued at 260,000 and a security deposit of $300,000 are excluded from current receivables. The total current net receivables are $940,000.

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    An Entity Reported Current Receivables On December 31

    Uploaded by

    pompom
    755 views1 page
    The document reports an entity's current receivables on December 31, 2015, which include trade accounts receivable of $930,000, allowance for uncollectible accounts of -$20,000, and a claim against a shipper for $30,000. Unsold consigned goods valued at 260,000 and a security deposit of $300,000 are excluded from current receivables. The total current net receivables are $940,000.

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    An Entity Reported Current Receivables on December 31

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    The document reports an entity's current receivables on December 31, 2015, which include trade accounts receivable of $930,000, allowance for uncollectible accounts of -$20,000, and a claim against a shipper for $30,000. Unsold consigned goods valued at 260,000 and a security deposit of $300,000 are excluded from current receivables. The total current net receivables are $940,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    755 views1 page

    An Entity Reported Current Receivables On December 31

    Uploaded by

    pompom
    The document reports an entity's current receivables on December 31, 2015, which include trade accounts receivable of $930,000, allowance for uncollectible accounts of -$20,000, and a claim against a shipper for $30,000. Unsold consigned goods valued at 260,000 and a security deposit of $300,000 are excluded from current receivables. The total current net receivables are $940,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    An entity reported current receivables on December 31, 2015 which consisted of the

    following:

    Trade accounts receivable 930,000


    Allowance for uncollectible accounts 20,000
    Claim against shipper for goods lost in transit in November 2015 30,000
    Selling price of unsold goods sent by the entity on consignment at 130% of
    cost and not included in the ending inventory 260,000
    Security deposit on lease of warehouse used for storing inventories 300,000

    What is the correct total of current net receivables on December 31, 2015?

    a. 1,500,000
    b. 1,200,000
    c. 1,240,000
    d. 940,000

    ANSWER : D

    Trade accounts receivable 930,000


    Allowance for uncollectible accounts ( 20,000)
    Claim against shipper 30,000
    Total current net receivables 940,000

    The selling price of unsold goods on consignment should be excluded from accounts
    receivable but the cost should be included in inventory.

    The security deposit is classified as noncurrent.

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