Question

On the December 31, 2017 balance sheet of Vanoy Co., the current receivables consisted of the following:

Trade accounts receivable $ 65,000
Allowance for uncollectible accounts (2,000)
Claim against shipper for goods lost in transit (November 2017) 3,000
Selling price of unsold goods sent by Vanoy on consignment
at 130% of cost (not included in Vanoy 's ending inventory) 26,000
Security deposit on lease of warehouse used for storing
some inventories 30,000
Total $122,000

At December 31, 2017, the correct total of Vanoy's current net receivables was

a. $66,000.
b. $92,000.
c. $96,000.
d. $122,000.

Answer 1

The current net receivables is calculated by subtracting the allowance for uncollectible accounts from the trade accounts receivable and adding any other current receivables. In this case, the correct total of Vanoy's current net receivables at December 31, 2017 is $122,000.

Step-by-step explanation:

The current net receivables is calculated by subtracting the allowance for uncollectible accounts from the trade accounts receivable and adding any other current receivables. In this case, the calculation would be:

Trade accounts receivable: $65,000

Allowance for uncollectible accounts: ($2,000)

Claim against shipper for goods lost in transit: $3,000

Selling price of unsold goods sent by Vanoy on consignment: $26,000

Security deposit on lease of warehouse: $30,000

Total current net receivables: $65,000 - $2,000 + $3,000 + $26,000 + $30,000 = $122,000

Therefore, the correct total of Vanoy's current net receivables at December 31, 2017 is $122,000 (option d).