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Last year you started a new business - 20% of sales were for cash. the business purchased $525,000 in merchandise during the year and marked
Last year you started a new business - 20% of sales were for cash. the business purchased $525,000 in merchandise during the year and marked to sell at 35% above cost. Collections (on account) from customers were $440,000. A year end inventory count showed $49,000 in ending merchandise inventory.
Required: Estimate the ending balance of accounts receivable
and any apparent shortages or overages.
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