Black Co. requires advance payments with special orders for machinery constructed to customer specifications.

These advances are nonrefundable. Information for 2011 is as follows:

Customer advances—balance 12/31/10 $118,000 Advances received with orders in 2011 184,000 Advances applied to orders shipped in 2011 164,000 Advances applicable to orders cancelled in 2011 50,000 In Black’s December 31, 2011 balance sheet, what amount should be reported as a current liability for advances from customer?

a. $0

b. $ 88,000

c. $138,000

d. $148,000