Ask Question
Today, 05:42

Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet.

-Sold merchandise on account for $64,000 to a customer.

-Received a promissory note of $57,000 for services performed.

-Advanced $10,000 to an employee.

+3
Answers (1)
  1. Today, 05:43
    0
    1. Accounts receivable

    2. Notes receivable

    3. Other receivable

    Explanation:

    Sold merchandise on account for $64,000 to a customer - Accounts receivable. Since the merchandise is sold on credit to a customer, the same is recorded in the current assets of the balance sheet as accounts receivable.

    Received a promissory note of $57,000 for services performed - Notes receivable. Since the promissory note is received for service performed which we term as a note receivable. This also come under the current assets of the balance sheet

    Advanced $10,000 to an employee - Other receivables - As an advance is given to an employee neither is an account receivable nor it notes receivable. So, it is term as an other receivable
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers