Question

Michael Co. is a corporation that sells breakfast bars. Based on the accounts listed below, what are Michael's total trade receivables? Income tax refund due $ 1,500 Advance due to the company from the company president 1,300 3-month note due from Michael's main customer 12,000 Interest due this month on the above note 1,100 Due and unpaid from this month's sales 19,000 Due and unpaid from last month's sales 11,000 A. $44,600 B. $42,000 C. $31,000 D. $45,900

Answer 1

Answer:

B. $42,000

Explanation:

Trade receivables refers total amounts that customers of a company are owing the company for goods or services sold to them.

For Michael Co., this can be calculated as follows:

Michael's total trade receivables = 3-month note due from Michael's main customer + Due and unpaid from this month's sales + Due and unpaid from last month's sales

Therefore, we have:

Michael's total trade receivables = $12,000 + $19,000 + 11,000 = $42,000.

Therefore, Michael's total trade receivables is $42,000.