Chapter 9, Problem 10DQ

To determine

Accounts Receivable:

The accounts receivable depicts the amount to be realized from the customers to whom the goods have been sold on credit by the business. Accounts receivable is an asset for the company as its collection increases the value of cash or amounts in bank and ultimately increases the assets part of the balance sheet. Also, sometimes a part of accounts receivable is termed to be bad debts on account of anticipation that the amount shall not be recovered from the customers in future and are being written off as loss.

To determine: S Company’s accounts receivable, titled as “Trade Receivable”, on its December 31, 2015 balance sheet is titled as current or non-current asset.