Mare Co.'s December 31, 20X3, balance sheet reported the following current assets:
Cash $70,000
Accounts receivable $120,000
Inventories $60,000
Total $250,000
An analysis of the accounts disclosed that accounts receivable consisted of the following:
Trade accounts $96,000
Allowance for uncollectible accounts ($2,000)
Selling price of Mare's unsold goods
out on consignment, at 130% of cost,
not included in Mare's ending inventory $26,000
Total $120,000
At December 31, 20X3, the total of Mare's current assets is?
$244,000
$224,000
$230,000
$270,000
The answer explanations is taking accounts receivable to a net of 94,000, I have an understanding of the $2000 uncollectable, but not the trading and accounts receivable valuation part.
Thanks.
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