C is corrent. The additional detail of accounts receivable indicates that goods out on consignment are included in accounts receivable at their selling price. Consignment goods should be included in inventory at their cost. Since the selling price of the consigned goods is 130% of cost, the cost of the $26,000 of goods at retail is $20,000 ($26,000/130%). Accounts receivable should be reduced to $94,000 ($120,000 - $26,000), and inventory should be increased to $80,000 ($60,000 + $20,000). Therefore, total current assets are $244,000 ($70,000 + $94,000 + $80,000).
A is incorrect because it fails to adjust inventory for the cost of the consigned goods.
B is incorrect because it fails to adjust inventory for the cost of the consigned goods and fails to include the claim against the shipper.
D is incorrect because it fails to consider the additional information.
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