Identify any errors in the following partial balance sheet. The interest receivable should be __________________________________
__. The allowance for doubtful accounts should be ____________________________________. WORD BANK
- added to the notes receivable
- deducted from accounts receivable
- reported separately as a current asset
- shown on the income statement as revenue
The interest receivable should be reported separately as a current asset. The allowance for doubtful accounts should be deducted from accounts receivable.
To solve this question we can use Lerner's equation or Lerner's index which gives the relationship between elasticity of demand and profit maximizing cost and marginal cost:
