ABC Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are non-refundable. Data for the year are: Customer advances, January 1 P 5,800,000 Advances received with orders 12,000,000 Advances applied to orders shipped 10,700,000 Advances applicable to orders cancelled 2,500,000 How much is the liability fro customer advances at the end of the year?
ABC Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are non-refundable. Data for the year are: Customer advances, January 1 P 5,800,000 Advances received with orders 12,000,000 Advances applied to orders shipped 10,700,000 Advances applicable to orders cancelled 2,500,000 How much is the liability fro customer advances at the end of the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company requires advance payments with special orders for machinery constructed to customer specifications. These advances are non-refundable. Data for the year are:
Customer advances, January 1 P 5,800,000
Advances received with orders 12,000,000
Advances applied to orders shipped 10,700,000
Advances applicable to orders cancelled 2,500,000
How much is the liability fro customer advances at the end of the year?
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