The controller believes that the net amount of the receivable/payable can be presented in the balance sheet while the accounting manager believes the gross amount of the receivable/payable should be presented in the balance sheet. In other words, the controller believes that they can present $150,000 Account Receivable while the accounting manager believes that they must present $250,000 Accounts Receivable and $100,000 Accounts Payable as of December 31st.  


Sold $250,000 of inventory on credit to Fitch Corporation on December 26th, 2019

Purchased $100,000 on credit of supplies from Fitch, Corporation on December 29th, 2019

How should we present the outstanding receivable and payable in its balance sheet under U.S. GAAP and IFRS for the year ending December 31, 2019?

Answer rating: 100% (QA)

As per the US Generally Accepted Accounting Principles GAAP and International Financial Reporting St... View the full answer