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.)

Question

Alexandra Li

Business

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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Paisley Moreno · Answer 1

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