TITO Co. requires advance payments with special orders for an equipment constructed to customer specifications. These advances are nonrefundable. Information for2020 is as follows: Customer advances-balance 1/1/20x0 P124,000 Advances received with orders in 20x0 300,000 Advances applied to orders shipped in 20x0 50,000 Advances applicable to orders canceled in 20x0 30,000 In Tito's December 31, 2020, balance sheet, what amount should be reported as a current liability for advances from customer? a. 0 b. 88,000 c. 74,000 d. 148,000
TITO Co. requires advance payments with special orders for an equipment constructed to customer specifications. These advances are nonrefundable. Information for2020 is as follows: Customer advances-balance 1/1/20x0 P124,000 Advances received with orders in 20x0 300,000 Advances applied to orders shipped in 20x0 50,000 Advances applicable to orders canceled in 20x0 30,000 In Tito's December 31, 2020, balance sheet, what amount should be reported as a current liability for advances from customer? a. 0 b. 88,000 c. 74,000 d. 148,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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. TITO Co. requires advance payments with special orders for an equipment constructed to customer specifications.
These advances are nonrefundable. Information for2020 is as follows:
Customer advances-balance 1/1/20x0 P124,000
Advances received with orders in 20x0 300,000
Advances applied to orders shipped in 20x0 50,000
Advances applicable to orders canceled in 20x0 30,000
In Tito's December 31, 2020,
for advances from customer?
a. 0 b. 88,000 c. 74,000 d. 148,000
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