Sheridan Company shows a balance of $186,470 in the Accounts Receivable account

ID: 2567906 • Letter: S

Question

Sheridan Company shows a balance of $186,470 in the Accounts Receivable account on December 31, 2017. The balance consists of the following.

Illustrate how the information above should be shown on the balance sheet of Sheridan Company on December 31, 2017. Assume that installment accounts collectible due after December 31, 2018 (Customers) are collectible within the operating cycle of the business.

Installment accounts due in 2018 $24,100 Installment accounts due after 2018 34,500 Overpayments to vendors 3,140 Due from regular customers, of which $40,660 represents accounts pledged as security for a bank loan 82,600 Advances to employees 1,590 Advance to subsidiary company (due in 2018) 81,200 alan g Sheridan Company shows·balance of $19.470 in the Actourts Retsirdie accout on Dec 31, 2017, Th. balance corm of the thing 24.100 4 500 ccounts pledged ecurity

Explanation / Answer

SHERDIAN COMPANY

Balance Sheet (Partial)

Current assets

Accounts receivable

Trade/Customer accounts (of which the amount of $40,660 have been pledged as a security for a bank loan)

$ 82,600.00

Installment accounts receivable due in 2018

$ 24,100.00

Other ($3,140 + $1,590)

$ 4,730.00

$ 111,430.00

Investments

Advance to subsidiary company

$ 81,200.00

Installment accounts receivable due after December 31, 2018

$ 34,500.00

$ 227,130.00