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Black Co. requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable. Information for 20x0 is as follows: Customer
Black Co. requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable. Information for 20x0 is as follows:
Customer advances-balance 1/1/20x0 - 118,000
Advances received with orders in 20x0 - 184,000
Advances applied to orders shipped in 20x0 - 164,000
Advances applicable to orders canceled in 20x0 - 50,000
In Black's December 31, 20x0, balance sheet, what amount should be reported as a current liability for advances from customer? show the solution and explain.
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