Question

Blossom company shows a balance of $242.110 in the accounts receivable account on December 31, 2025. The balance consists of the following: installment accounts due in 2026, installment accounts due after 2026, overpayments to vendors, due from regular customers (of which $39,510 represents accounts pledged as security for a bank loan), advances to employees, and advance to subsidiary company (due in 2026) $29,500, 37,000, 3,460, 80,300, 2,350, 89,500. Illustrate how the information above should be shown on the balance sheet of Blossom company on December 31, 2025?

Answer 1

On the balance sheet of Blossom Company on December 31, 2025, the assets should include installment accounts due in 2026, installment accounts due after 2026, overpayments to vendors, due from regular customers, advances to employees, and advance to subsidiary company.

Step-by-step explanation:

On the balance sheet of Blossom Company on December 31, 2025, the information should be shown as follows:

Assets:

• Installment accounts due in 2026: $29,500
• Installment accounts due after 2026: $37,000
• Overpayments to vendors: $3,460
• Due from regular customers (of which $39,510 represents accounts pledged as security for a bank loan): $80,300
• Advances to employees: $2,350
• Advance to subsidiary company (due in 2026): $89,500

Liabilities:

• Total accounts receivable: $242,110