On December 31,2015,Sandy Company has a Note Receivable of $5,000.The note will be collected in installments.$1,000 is due on December 31,2016 and $1,000 is due every year after December 31,2016.The classification of the note on the balance sheet at December 31,2015 is:

Question

Quizplus · Accepted Answer

Only $1,000 is due within the next year, so that part of the note is considered a current asset. The remaining $4,000 is due after the next year, so it is considered a long-term asset. Therefore, $1,000 is a current asset and $4,000 is a long-term asset.

On December 31,2015,Sandy Company Has a Note Receivable of $5,000