Your answer is incorrect. Try again. Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,355 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $128,740 as shown in the ledger.The following information is available for your first year in business. (1) Collections from customers $310,860 (2) Merchandise purchased 502,400 (3) Ending merchandise inventory 141,300 (4) Goods are marked to sell at 40% 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 $
Your answer is incorrect. Try again. Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,355 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $128,740 as shown in the ledger.The following information is available for your first year in business. (1) Collections from customers $310,860 (2) Merchandise purchased 502,400 (3) Ending merchandise inventory 141,300 (4) Goods are marked to sell at 40% 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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
| Your answer is incorrect. Try again. | |
Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,355 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $128,740 as shown in the ledger.
The following information is available for your first year in business.
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 following information is available for your first year in business.
| (1) | Collections from customers | $310,860 | ||
| (2) | Merchandise purchased | 502,400 | ||
| (3) | Ending merchandise inventory | 141,300 | ||
| (4) | Goods are marked to sell at 40% 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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