Presented below is a list of balance sheet accounts. Accounts payable Cash Accounts receivable Common stock Accumulated depreciation—buildings Copyright (net) Accumulated depreciation—equipment Equipment Allowance for uncollectible accounts Interest receivable (due in three months) Restricted cash (to be used in 10 years) Inventory Bonds payable (due in 10 years) Land (in use) Buildings Long-term investments Notes payable (due in 6 months) Interest payable (current) Notes receivable (due in 2 years) Retained earnings Patent (net) Short-term investments Additional paid-in capital Income taxes payable Prepaid expenses Salaries payable Required: Prepare a classified balance sheet ignoring monetary amounts. (Enter the answer in the order of liquidity.)
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.
Presented below is a list of
| Accounts payable | Cash |
| Common stock | |
| Copyright (net) | |
| Accumulated depreciation—equipment | Equipment |
| Allowance for uncollectible accounts | Interest receivable (due in three months) |
| Restricted cash (to be used in 10 years) | Inventory |
| Bonds payable (due in 10 years) | Land (in use) |
| Buildings | Long-term investments |
| Notes payable (due in 6 months) | Interest payable (current) |
| Notes receivable (due in 2 years) | |
| Patent (net) | Short-term investments |
| Additional paid-in capital | Income taxes payable |
| Prepaid expenses | Salaries payable |
Required:
Prepare a classified balance sheet ignoring monetary amounts. (Enter the answer in the order of liquidity.)
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