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9 August, 10:45

Tamarisk Corporation has the following accounts included in its December 31, 2017, trial balance: Accounts Receivable $119,100, Inventory $294,700, Allowance for Doubtful Accounts $9,780, Patents $74,800, Prepaid Insurance $9,510, Accounts Payable $82,500, and Cash $34,700. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

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  1. 9 August, 11:02
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    Tamarisk Corporation

    Balance sheet as on December 31, 2017

    Current Asset

    Cash $34,700.

    Accounts Receivable $119,100

    Inventory $294,700

    Prepaid Insurance $9,510

    Total Current Assets $458,010

    Explanation:

    Current assets are those asset which is liquidated within one year e. g cash, inventory etc.

    Following accounts are the non current assets accounts, that is why these balances are not added in the current account section.

    Allowance for Doubtful Accounts $9,780

    Patents $74,800

    Accounts Payable $82,500
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