Classifying Items Related to Receivables and Payables in a Balance SheetWhen examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following. ItemsDebitCreditAccounts receivable—customers$16,000 Accounts receivable—officers (current collection expected)1,000 Travel advances to sales staff400 Accounts payable for merchandise $7,700Unpaid salaries 1,320Credit balances in customer accounts (accounts receivable) 800Cash received in advance from customers for goods not yet shipped 180Allowance for doubtful accounts, adjusted 200 Indicate how each of the items should be reported on WholeFoods Company’s balance sheet. Some accounts below may have a zero balance.Do not use negative signs in your answers.Cash and cash equivalents AnswerAccounts receivable, tradeAnswer Less allowance for doubtful accountsAnswerAnswerShort-term investments AnswerInventory AnswerDue from officers AnswerCustomer advances AnswerPrepaid expenses AnswerAccounts payable—trade AnswerAmounts due to customers AnswerCustomer advances AnswerDeferred revenue AnswerSalaries payable AnswerDue from officers Answer

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Description: Classifying Items Related to Receivables and Payables in a Balance SheetWhen examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called recei

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Classifying Items Related to Receivables and Payables in a Balance Sheet

When examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following.

Items	Debit	Credit
Accounts receivable—customers	$16,000
Accounts receivable—officers (current collection expected)	1,000
Travel advances to sales staff	400
Accounts payable for merchandise		$7,700
Unpaid salaries		1,320
Credit balances in customer accounts (accounts receivable)		800
Cash received in advance from customers for goods not yet shipped		180
Allowance for doubtful accounts, adjusted		200

Indicate how each of the items should be reported on WholeFoods Company’s balance sheet.

Some accounts below may have a zero balance.
Do not use negative signs in your answers.

Cash and cash equivalents		Answer
Accounts receivable, trade	Answer
Less allowance for doubtful accounts	Answer	Answer
Short-term investments		Answer
Inventory		Answer
Due from officers		Answer
Customer advances		Answer
Prepaid expenses		Answer
Accounts payable—trade		Answer
Amounts due to customers		Answer
Customer advances		Answer
Deferred revenue		Answer
Salaries payable		Answer
Due from officers		Answer

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