Question
The following information is from Kulvers Company for the current year: . Accounts receivable beginning balance: $100,000 Collections on customers accounts: $502,000 Sales on credit
The following information is from Kulvers Company for the current year:
. Accounts receivable beginning balance: $100,000
Collections on customers accounts: $502,000
Sales on credit for the year: $545,000
Note: Round your answer to the nearest whole dollar.
Required:
a. Estimate the value of ending accounts receivable given the information above.
b. If the ending balance for accounts receivable is $75,000 on December 31, what is one possible reasons that this amount is different from the amount estimated in part a?
(a. beginning balance of accounts receivable was understated, b. cash collections included cash from prior year sales, c. company experienced a shortage of inventory due to theft, d. sales on credit are overstated because cash sales were included)
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