The following information is available for Jaworski second year in business: • Opening merchandise inventory is 35,000. • Goods are marked to sell at 35% above cost. • Merchandise purchased totalled 600,000. • Collections from customers are 420,000. • Ending merchandise inventory is 225,000. • Opening accounts receivable balance is 0. • Ending accounts receivable balance is 85,000. Required: a. Estimate the ending accounts receivable that should appear in the ledger. Calculate any shortages, if any. Assume that all sales are made on account. b. What controls can be put in place to prevent theft?

The following information is available for Jaworski second year in business: • Opening merchandise inventory is 35,000. • Goods are marked to sell at 35% above cost. • Merchandise purchased totalled 600,000. • Collections from customers are 420,000. • Ending merchandise inventory is 225,000. • Opening accounts receivable balance is 0. • Ending accounts receivable balance is 85,000. Required: a. Estimate the ending accounts receivable that should appear in the ledger. Calculate any shortages, if any. Assume that all sales are made on account. b. What controls can be put in place to prevent theft?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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