Reference no: EM131609741

Question - The following trial balance of JB Company at December 31, 2017, has been adjusted except for income taxes. The income tax rate is 30%.

DR CR

Accounts receivable, net $725,000

Accounts payable 250,000

Accumulated depreciation 125,000

Cash 185,000

Contributed capital 650,000

Expenses 3,750,000

Goodwill 140,000

Prepaid taxes 225,000

Property, plant, and equipment 850,000

Retained earnings, 1/1/2017 350,000

Revenues 4,500,000

5,875,000 5,875,000

During 2017, estimated tax payments of $225,000 were paid and debited to prepaid taxes. There were no differences between financial statement and taxable income for 2017.

Included in accounts receivable is $400,000 due from a loyal customer. Special terms were granted to this customer to make payments of $100,000 semi-annually every March 1 and September 1.

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

a) 1,135,000

b) 935,000

c) 710,000

d) 910,000