On October 31, 2017, Dingo, Inc. had cash accounts at three different banks. One account balance is segregated solely for a November 15, 2017, payment into a bond sinking fund. A second account, used for branch operations, is overdrawn. The third account, used for regular corporate operations, has a positive balance.

How should these accounts be reported in Dingo's October 31, 2017, classified balance sheet?

The segregated and regular accounts should be reported as current assets, and the overdraft should be reported as a current liability.

The segregated account should be reported as a noncurrent asset, and the regular account should be reported as a current asset net of the overdraft.

The segregated and regular accounts should be reported as current assets net of the overdraft.

The segregated account should be reported as a noncurrent asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability.