Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,500 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $82,000 as shown in the ledger. The following information is available for your first year in business. 1. Collections from customers $198,000 2. Merchandise purchased 320,000 3. Ending merchandise inventory 90,000 4. Goods are marked to sell at 40% above cost Instructions 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.
Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,500 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $82,000 as shown in the ledger. The following information is available for your first year in business. 1. Collections from customers $198,000 2. Merchandise purchased 320,000 3. Ending merchandise inventory 90,000 4. Goods are marked to sell at 40% above cost Instructions 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your
The following information is available for your first year in business.
| 1. Collections from customers | $198,000 | |
| 2. Merchandise purchased | 320,000 | |
| 3. Ending merchandise inventory | 90,000 | |
| 4. Goods are marked to sell at 40% above cost |
Instructions
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.
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