Represents accounts pledged as security for a bank loan


Patriot Company shows a balance of $241,140 in the Accounts Receivable account on December 31, 2012. The balance consists of the following.

Installment accounts due in 2013
$23,000
Installment accounts due after 2013
34,000
Overpayments to creditors
2,640
Due from regular customers, of which $40,000 represents accounts pledged as security for a bank loan
89,000
Advances to employees
1,500
Advance to subsidiary company (made in 2010)
91,000


Illustrate how the information above should be shown on the balance sheet of Patriot Company on December 31, 2012.

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Accounting Basics: Represents accounts pledged as security for a bank loan
Reference No:- TGS0554987

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