Question

Riverbed Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivable $111,900, Inventory $295,000, Allowance for Doubtful Accounts $9,080, Patents $80,900, Prepaid Insurance $9,790, Accounts Payable $79,100, and Cash $32,000. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Answer 1

$439,610

Step-by-step explanation:

Preparation for the current assets section of the balance sheet

Current assets

Cash $32,000

Accounts Receivable$111,900

Allowance for Doubtful Accounts($9,080)$102,820

($111,900-$9,080)

Inventory $295,000

Prepaid Insurance $9,790

Total current assets $439,610

($32,000+$102,820+$295,000+$9,790)

Therefore the current assets section of the balance sheet is $439,610