The July 31, 200X, general ledger trial balance of Aerospace Contractors, Inc., reflects the following accounts associated with receivables. Balances of the accounts are after all adjusting journal entries proposed by the auditors and accepted by the client.

Remember that two or more ledger accounts are often combined into one amount in the financial statements in order to achieve a concise presentation. The need for brevity also often warrants the disclosure of some information parenthetically, as for example, the amount of the allowance for doubtful accounts.
Required:

a. Draft a partial balance sheet for Aerospace Contractors at July 31, 200X. In deciding upon which items deserve separate listing, consider materiality as well as the nature of the accounts.

b. Write an explanation of the reasoning employed in your balance sheet presentation of these accounts.

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Accounts receivable-commercial Accounts receivable-U.S. government Allowance for uncollectible accounts and notes Claims receivable-public carriers Claims receivable-U.S. government terminated contracts Due from Harwood Co., investee Notes receivable-trade $ 595,000 3,182,000 75,000 cr. 7,000 320,000 480,000 15.000