Question

Lansing Construction Company had the following receivables: Employee advances 500, Notes receivable (i.e., promissory notes from customers in exchange for services performed by Lansing Construction Co. 3,500, Income taxes refundable 2,000, Accounts receivable 13,000, Notes receivable (i.e., promissory notes obtained from creditors who purchased used equipment from Lansing Construction Co. 3,000, Interest receivable 200, Loans to company officers 4,400. Based on this information, what is the company's Trade Receivables?

1) 16,500
2) 19,500
3) 18,700
4) 15,000

Answer 1

The company's Trade Receivables is $16,500.

Step-by-step explanation:

To calculate the company's Trade Receivables, we need to consider the relevant accounts: Accounts Receivable and Notes Receivable from customers. These accounts represent the amount of money owed to the company for services performed or goods sold. Adding the balances of these two accounts, we get $13,000 (Accounts Receivable) + $3,500 (Notes Receivable from customers) = $16,500. Therefore, the company's Trade Receivables is $16,500.