Your accounts receivable clerk, Mary Herman, to whom you pay a salary of $1,500 per month, has just purchased a new Audi. You decided to test the accuracy of the accounts receivable balance of $117,000 as shown in the ledger. The following information is available for your first year in business.

1. Collections from customers ............................. $198,000
2. Merchandise purchased ...................................... 320,000
3. Ending merchandise inventory ............................. 70,000
4. Goods are marked to sell at 40% above cost

Instructions

Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.