Dorman Company had the following items to report on its balance sheet:
|
Employee advances |
$ 1,580 |
|
Amounts owed by customers for the sale of services (due in 30 days) |
3,050 |
|
Refundable income taxes |
1,120 |
|
Interest receivable |
950 |
|
Accepted a formal instrument of credit for services (due in 18 months) |
2,220 |
|
A loan to company president |
10,000 |
|
Dishonored a note for principal and interest which will eventually be collected |
1,380 |
Based on this information, what amount should appear in the "Other
Receivables" category?
| A. |
$15,030 |
|
| B. |
$13,650 |
|
| C. |
$17,250 |
|
| D. |
$20,300 |
Solution:
Other receivables = Employee advances + Refundable income taxes + Interest receivable + loan to company president
= 1580 + 1120 + 950 + 10000
= $13,650
Hence, option "B" is correct.
Dorman Company had the following items to report on its balance sheet: Employee advances $ 1,580...