Reference no: EM132470188
Receivables on the Balance Sheet
Question 1: Identify any errors in the following partial balance sheet.
Napa Vino Company
Balance Sheet
December 31, 20Y9
Assets
Current assets:
Cash $78,500
Notes receivable $300,000
Less interest receivable 4,500 295,500
Accounts receivable $1,200,000
Plus allowance for doubtful accounts 11,500 1,211,500
The interest receivable should be:
A. added to the notes receivable
B. reported separately as a current asset
C. shown on the income statement revenue
D. deducted from accounts receivable
The allowance for doubtful accounts should be:
A. added to the notes receivable
B. reported separately as a current asset
C. shown on the income statement revenue
D. deducted from accounts receivable