During its first year of operation, Energy Solution had credit sales of 3,000,000; 600,000 remained...
90.2K
Verified Solution
Link Copied!
Question
Accounting
During its first year of operation, Energy Solution had credit sales of 3,000,000; 600,000 remained uncollected at year-end. The credit manager estimates that 28,000 of these receivables will become uncollectible.
(b) Prepare the current assets section of the statement of financial position for Energy Solution. Assume that in addition to the receivables it has cash of 90,000, inventory of 130,000, and prepaid insurance of 7,500
I know that the answer of total current asset is 796,000, but I don't get where this number came from.
If you add 7.500,130.000,600.000,and minus 31.000, it is 569.000 and
if you add 569.000 and 90.000, it has to become 629.000 not 796.000.
I don' get why the answer is 796.000
Please explain the process and which part I got wrong.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
