List any errors you can find in the following partial balance sheet:1. The interest receivable should be reported separately as a current asset.

List any errors you can find in the following partial balance sheet:

Answer:

1. The interest receivable should be reported separately as a current asset. It 

should not be deducted from notes receivable.

2. The allowance for doubtful accounts should be deducted from accounts

receivable.

A corrected partial balance sheet would be as follows:

Current assets:

Cash$ 78,500

Notes receivable300,000

Accounts receivable$1,200,000

Less allowance for doubtful accounts 11,500 1,188,500

Interest receivable4,500