When the Account Receivable of an Individual Customer Has a Credit

Multiple Choice

When the account receivable of an individual customer has a credit balance of a material amount, this amount:

A) must be included separately in the liability section of the balance sheet.
B) may be deducted from the debit balances in other customers' accounts on the balance sheet.
C) may be shown under "credit balances of customers' accounts" in the current asset section of the balance sheet.
D) should be omitted from the current balance sheet.