Question - The following trial balance of JB Company at December 31, 2017, has been adjusted except for income taxes. The income tax rate is 30%.
DR CR
Accounts receivable, net $725,000
Accounts payable 250,000
Accumulated depreciation 125,000
Cash 185,000
Contributed capital 650,000
Expenses 3,750,000
Goodwill 140,000
Prepaid taxes 225,000
Property, plant, and equipment 850,000
Retained earnings, 1/1/2017 350,000
Revenues 4,500,000
5,875,000 5,875,000
During 2017, estimated tax payments of $225,000 were paid and debited to prepaid taxes. There were no differences between financial statement and taxable income for 2017.
Included in accounts receivable is $400,000 due from a loyal customer. Special terms were granted to this customer to make payments of $100,000 semi-annually every March 1 and September 1.
In JB Company's December 31, 2017 Balance Sheet, what amount should be reported as current assets?
a) 1,135,000
b) 935,000
c) 710,000
d) 910,000