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Classifying Items Related to Receivables and Payables in a Balance Sheet When examining the accounts of WholeFoods Company, we ascertain that balances relating to both
Classifying Items Related to Receivables and Payables in a Balance Sheet
When examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following.
Items | Debit | Credit |
---|---|---|
Accounts receivablecustomers | $16,000 | |
Accounts receivableofficers (current collection expected) | 1,000 | |
Travel advances to sales staff | 400 | |
Accounts payable for merchandise | $7,700 | |
Unpaid salaries | 1,320 | |
Credit balances in customer accounts (accounts receivable) | 800 | |
Cash received in advance from customers for goods not yet shipped | 180 | |
Allowance for doubtful accounts, adjusted | 200 |
Indicate how each of the items should be reported on WholeFoods Companys balance sheet.
- Some accounts below may have a zero balance.
- Do not use negative signs in your answers.
Cash and cash equivalents | Answer | |
Accounts receivable, trade | Answer | |
Less allowance for doubtful accounts | Answer | Answer |
Short-term investments | Answer | |
Inventory | Answer | |
Due from officers | Answer | |
Customer advances | Answer | |
Prepaid expenses | Answer | |
Accounts payabletrade | Answer | |
Amounts due to customers | Answer | |
Customer advances | Answer | |
Deferred revenue | Answer | |
Salaries payable | Answer | |
Due from officers | Answer |
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