Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $789,000. This balance consists of the following items: Due

Question

71 users unlocked this solution today!

Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $789,000.

This balance consists of the following items:

Due from regular customers............................................................................$523,000

Refund receivable on prior year’s income taxes (an established claim).........15,500

Travel advance to employees...............................................................................22,000

Loan to wholly owned subsidiary........................................................................45,500

Advances to creditors for goods ordered...........................................................61,000

Accounts receivable assigned as security for loans payable............................75,000

Notes receivable past due plus interest on these notes...................................47,000

Total.....................................................................................................................$789,000

Illustrate how these items should be shown in the balance sheet as of December 31.