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Your accounts receivable clerk, Ms. Linda, to whom you pay a salary of $7,475 per month, has just purchased a new Cadillac. You decide to
Your accounts receivable clerk, Ms. Linda, to whom you pay a salary of $7,475 per month, has just purchased a new Cadillac. You decide to test the accuracy of the accounts receivable balance of $100,050 as shown in the ledger. The following information is available for your first year in business. (1) Collections from customers $233,450 (2) Merchandise purchased 373,750 (3) Ending merchandise inventory 109,250 (4) Goods are marked to sell at 50% above cost 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. The ending balance of accounts receivable from customers $ Apparent shortage $
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