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Prepare the current assets section of its balance sheet. The Allowance for Doubt

ID: 2519912 • Letter: P

Question

Prepare the current assets section of its balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

  Accounts Payable $ 860   Accounts Receivable 890   Accumulated Amortization 590   Accumulated Depreciation 930   Allowance for Doubtful Accounts 70   Cash and Cash Equivalents 970   Equipment 6,355   Income Taxes Payable 70   Notes Payable (long-term) 2,900   Notes Payable (short-term) 85   Notes Receivable (long-term) 350   Prepaid Rent 410   Retained Earnings 8,330   Service Revenue 590   Short-term Investments 3,740   Software 745   Unearned Revenue 920

Explanation / Answer

Partial Balance Sheet As of November 30, 20XX (in millions of dollars) Assets Current Assets: Cash and Cash Equivalents 970 Short-term Investments 3740 Accounts Receivable 890 Less: Allowance for Doubtful Accounts 70 Accounts Receivable, net of Allowance 820 Prepaid Rent 410 Total Current Assets 5940