Mooney Inc. is a U.S. parent company with an Italian subsidiary that prepares its financial statements in accordance with (1) U.S. GAAP for consolidated reporting and (2) IFRS for reporting to its Italian based lender. Mooney has a December 31^st year end. Mooney has engaged in the following transactions with Fitch Corporation in December 2020.

• Sold $350,000 of inventory on credit to Fitch Corporation on December 26^th, 2020
• Purchased $100,000 on credit of supplies from Fitch, Corporation on December 29^th, 2020

Mooney and Fitch have contractually agreed that a net payment of $250,000 will be paid by Fitch to Mooney no later than February 15^th, 2021. (Both Mooney and Fitch have excellent credit so collectability is not an issue).

The controller of Mooney believes that the net amount of the receivable/payable can be presented in the balance sheet while the accounting manager believes the gross amount of the receivable/payable should be presented in the balance sheet. In other words, the controller believes that Mooney can present $250,000 Account Receivable while the accounting manager believes that Mooney must present $350,000 Accounts Receivable and $100,000 Accounts Payable as of December 31^st.

Accounting Issue: How should Mooney present the outstanding receivable and payable in its balance sheet under U.S. GAAP and IFRS for the year ending December 31, 2020?

a. GAAP Codification Reference: _______________________

b. IFRS Reference: _______________________