The following information from Tiny Companys first year of operations is to be used in testing the

Question:

The following information from Tiny Company’s first year of operations is to be used in testing the accuracy of Accounts Receivable. The December 31, 2011, balance is $28,300.

(a) Collections from customers, $48,000.

(b) Merchandise purchased, $74,000.

(d) Goods sell at 60% above cost.

(e) All sales are on account.

Compute the balance that Accounts Receivable should show and determine the amount of any shortage or overage.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...