Below are the alphabetized list of adjusted account balances. Balance Account Accounts receivable 11e,000 Accumulated depreciation, building Allowance for doubtful accounts Bad debt expense 29,000 2,350 2,100 Building 375,000 Cash 19,000 Merchandise inventory 82,000 Notes receivable, due May 1, 2022 Notes receivable, due Nov. 30, 2020 Supplies 61,000 14,300 5,260 *Assume all balances are normal. Prepare the current asset section of LISTel's March 31, 2020, balance sheet. (List assets in the order of llquidity.) LisTel Partial Balance Sheet March 31, 2020 Assets Current assets:
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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