Based on the Following Information, What Is the Net Amount

question 74

Multiple Choice

Based on the following information, what is the net amount that this equipment should be reported at in the balance sheet at December 31, 2012?

• A)$230,000
• B)$240,000
• C)$250,000
• D)$270,000

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Definitions:

Lockbox

A service offered by banks to companies for the collection of payments from customers, involving a special post office box to speed up the deposit process.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed a company by its clients or customers who have promised to pay for the products at a later date.