Culver Company shows a balance of $237,880 in the Accounts Receivable account on December 31, 2020. The balance consists of the following.Installment accounts due in 2021 $23,900Installment accounts due after 2021 38,300Overpayments to vendors 3,540Due from regular customers, of which $39,570 represents accounts pledged as security for a bank loan 87,500Advances to employees 1,740Advance to subsidiary company (due in 2021) 82,900Illustrate how the information above should be shown on the balance sheet of Culver Company on December 31, 2020. Assume that installment accounts collectible due after December 31, 2018 (Customers) are collectible within the operating cycle of the business. The company’s operating cycle is such that all installment receivables are classified as current. CULVER COMPANYBalance Sheet (Partial)

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Answered: Culver Company shows a balance of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Culver Company shows a balance of $237,880 in the Accounts Receivable account on December 31, 2020. The balance consists of the following.

Installment accounts due in 2021		$23,900
Installment accounts due after 2021		38,300
Overpayments to vendors		3,540
Due from regular customers, of which $39,570 represents accounts pledged as security for a bank loan		87,500
Advances to employees		1,740
Advance to subsidiary company (due in 2021)		82,900

Illustrate how the information above should be shown on the balance sheet of Culver Company on December 31, 2020. Assume that installment accounts collectible due after December 31, 2018 (Customers) are collectible within the operating cycle of the business. The company’s operating cycle is such that all installment receivables are classified as current.

CULVER COMPANY
Balance Sheet (Partial)

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