Question
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,
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?
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