An entity reported current receivables on December 31, 2015 which consisted of the

following:

Trade accounts receivable 930,000

Allowance for uncollectible accounts 20,000
Claim against shipper for goods lost in transit in November 2015 30,000
Selling price of unsold goods sent by the entity on consignment at 130% of
cost and not included in the ending inventory 260,000
Security deposit on lease of warehouse used for storing inventories 300,000

What is the correct total of current net receivables on December 31, 2015?

a. 1,500,000
b. 1,200,000
c. 1,240,000
d. 940,000

ANSWER : D

Trade accounts receivable 930,000

Allowance for uncollectible accounts ( 20,000)
Claim against shipper 30,000
Total current net receivables 940,000

The selling price of unsold goods on consignment should be excluded from accounts
receivable but the cost should be included in inventory.

The security deposit is classified as noncurrent.