For each transaction, indicate whether the receivables should be reported as accounts receivable, notes receivable, or other receivables on a statement of financial position. (a) Received a promissory note of $12,200 for services performed. Notes Receivable (b) Sold merchandise on account to a customer for $9,300. Other Receivables Accounts Receivable (c) Advanced $5,000 to an employee. (d) Estimated $5,000 of income tax to be refunded. (e) Extended a customer's account for six months by accepting a note in exchange for the amount owed on the account. (f) Sales tax (HST) of $2,500 is recoverable at the end of the quarter.
For each transaction, indicate whether the receivables should be reported as accounts receivable, notes receivable, or other receivables on a statement of financial position. (a) Received a promissory note of $12,200 for services performed. Notes Receivable (b) Sold merchandise on account to a customer for $9,300. Other Receivables Accounts Receivable (c) Advanced $5,000 to an employee. (d) Estimated $5,000 of income tax to be refunded. (e) Extended a customer's account for six months by accepting a note in exchange for the amount owed on the account. (f) Sales tax (HST) of $2,500 is recoverable at the end of the quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below are several receivables transactions.
For each transaction, indicate whether the receivables should be reported as accounts receivable, notes receivable, or other
receivables on a statement of financial position.
(a)
Received a promissory note of $12,200 for services performed.
Notes Receivable
(b)
Sold merchandise on account to a customer for $9,30.
Other Receivables
Accounts Receivable
(c)
Advanced $5,000 to an employee.
(d)
Estimated $5,000 of income tax to be refunded.
(e)
Extended a customer's account for six months by accepting a note in exchange for the
amount owed on the account.
(f)
Sales tax (HST) of $2,500 is recoverable at the end of the quarter.
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