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Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $789,000.
This balance consists of the following items:
Due from regular customers $523,000Refund receivable on prior year's income taxes (an established claim) 15,500Travel advance to employees 22,000Loan to wholly owned subsidiary 45,500Advances to creditors for goods ordered 61,000Accounts receivable assigned as security for loans payable 75,000Notes receivable past due plus interest on these notes 47,000Total $789,000Illustrate how these items should be shown in the balance sheet as of December 31.
Budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency va..
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