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Black Company required nonrefundable advance payments with special orders for machinery constructed to customer specifications.
The entity provided the tollowing intormation for the current year:
Customer advances - beginning of year 1,180,000
Advances received with orders 1,840,000
Advances applied to orders shipped 1,640,000
Advances applicable to orders canceled 500,000
Question 1: What amount should be reported as current liability for advances from customers at year-end?
a. 1,480,000
b. 1,380,000
c. 880,000
d. 0
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