Question 5

The following trial balance of Trey Co. at December 31, 2017 has been adjusted except for income tax expense.

Dr.Cr.Cash

$550,000

Accounts Receivable, net

1,650,000

Prepaid taxes

300,000

Accounts payable

$120,000

Common stock

500,000

Additional paid-in capital

680,000

Retained earnings

630,000

Foreign currency translation adjustment

430,000

Revenues

3,600,000

Expenses

2,600,000

$5,530,000

$5,530,000

Additional information:

During 2017, estimated tax payments of $300,000 were charged to prepaid taxes. Trey has not yet recorded income tax expense. There were no differences between the financial statement and the income tax income, and Trey's tax rate is 30%.

Included in accounts receivable is $500,000 due from a customer. Special terms granted to this customer require payments in equal, semiannual installments of $125,000 every April 1 and October 1.

In Trey's December 31, 2017 Balance Sheet, what amount should be reported as total current assets?