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    Accounting question

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    Mare Company's December 31, 2005 balance sheet reported the following current assets:

    Cash $70,000
    Accounts receivable 120,000
    Inventories 60,000
    Total $250,000

    The analysis of the accounts disclosed that accounts receivable consisted of the followings:

    Trade accounts $96,000
    Allowance for uncollectible accounts (2,000)
    Selling price of Mare's unsold goods out on consignment, at 130% of cost, not included in Mare's ending inventory 26,000
    Total $120,000


    What are the correct totals for cash, accounts receivable, and inventories at December 31, 2005?

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    Solution Summary

    This posting provides solution to accounting question focusing on correct totals for cash, accounts receivable, and inventories for December 31, 2005.