Cheyenne Corp. had the following balances in receivable accounts at October 31, 2020 (in thousands): Allowance for Doubtful Accounts $57, Accounts Receivable $2,800, Other Receivables $183, and Notes Receivable $1,354.
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.
Cheyenne Corp. had the following balances in receivable accounts at October 31, 2020 (in thousands): Allowance for Doubtful Accounts $57,
![**Preparation of Cheyenne Corp.'s Balance Sheet Presentation**
Welcome to the educational tutorial on preparing the balance sheet presentation of Cheyenne Corp.’s receivables in good form. Below, we will guide you through a step-by-step process using an example format.
### CHEYENNE CORP. Balance Sheet (Partial)
**(in thousands)**
**Receivables:**
1. **Current Receivables**
- Accounts Receivable: [Dropdown Option]
- Notes Receivable: [Dropdown Option]
**Less:**
- Allowance for Doubtful Accounts: [Dropdown Option]
**Other Receivables** (e.g., Interest Receivable, Advances to Employees):
- Specify type: [Dropdown Option]:
**Total Receivables**:
Here is an example illustration of the layout you are expected to follow while preparing the balance sheet:
1. **Accounts Receivable:**
- [Select type] $_____________
2. **Notes Receivable:**
- [Select type] $_____________
3. **Allowance for Doubtful Accounts:**
- [Select type] $_____________ (subtract from receivables)
4. **Net Accounts Receivable:**
- $_____________
5. **Other Receivables (specify type):**
- [Select type] $_____________
6. **Total Receivables:**
- $_____________
By filling in each dropdown and input box with the relevant figures, you will accurately present the receivables section of Cheyenne Corp.’s balance sheet.
### Visual Description:
- There are several dropdown menus that allow the user to select the type of receivables (e.g., Accounts, Notes).
- There are input boxes next to the dropdown menus to fill in monetary amounts in thousands.
- An emphasis on allowing for Doubtful Accounts ensures that the net receivables figure is accurately presented.
This step-by-step input method helps in systematically organizing and presenting the receivables, ensuring a clear and professional balance sheet for Cheyenne Corp.
For a practical application and better understanding, please ensure to input real data aligned with the company's financial statements into the respective fields.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e7713e5-bc5d-45b6-9158-f2a077b22183%2F1dcf895d-e90f-4bbe-94e3-d161d46ec71c%2Fz01mtc_processed.png&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
