For the budget period ending december 31 of the current year, aaron corporation estimates its ending balances for cash as $4,000, accounts receivable as $16,000, finished goods inventory as $12,000, and raw materials inventory as $8,000. invoices relating to raw materials in the amount of $14,000 are expected to be unpaid as of december 31. what is the amount of total current assets that will be reported on the budgeted balance sheet? $20,000 $26,000 $32,000 $40,000

Journal Entries

2018

Feb. 1 Debit 6% Note Receivable (Candace Smith) $12,000

Credit Cash $12,000

To record receipt of a one-year, 6% note.

Apr. 6 Debit 12% Note Receivable (Park Pro) $6,000

Credit Sales Revenue $6,000

To record receiving a 90-day, 12% note.

Apr. 30 Debit Interest Receivable $230

Credit Interest Revenue $230

To accrue interest revenue for both notes.

Explanation:

a) Data and Analysis:

2018

Feb. 1 6% Note Receivable (Candace Smith) $12,000 Cash $12,000

a one-year, 6% note.

Apr. 6 12% Note Receivable (Park Pro) $6,000 Sales Revenue $6,000, receiving a 90-day, 12% note

Apr. 30 Interest Receivable $230 Interest Revenue $230

($12,000 * 6% * 3/12) + ($6,000 * 12% * 25/360)

= $180 + $50

= $230