In order to confirm the reported $ 141,500 ending accounts receivable balance in the general ledger,...

 

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In order to confirm the reported $ 141,500 ending accounts receivable balance in the general ledger, your external auditor perfroms a test using transactions recorded and the ending inventory count to calculate an estimate of ending accounts receivable balance as part of substantive testing. In addition to the reported $ 141,500 ending accounts receivable balance in the general ledger, the other available information includes: 1. Cash collections from customers 2. Inventory purchases 3. Ending inventory 4. Sales prices at 150% of inventory cost 5. All sales are made on account. Requirements Calculate expected ending accounts receivable Calculate any apparent Overage(Shortage). 225,000 375,000 135,000 Answer Show your calculations in the work area to the right. Failure to show your work will result in no credit for this exercise. In order to confirm the reported $ 141,500 ending accounts receivable balance in the general ledger, your external auditor perfroms a test using transactions recorded and the ending inventory count to calculate an estimate of ending accounts receivable balance as part of substantive testing. In addition to the reported $ 141,500 ending accounts receivable balance in the general ledger, the other available information includes: 1. Cash collections from customers 2. Inventory purchases 3. Ending inventory 4. Sales prices at 150% of inventory cost 5. All sales are made on account. Requirements Calculate expected ending accounts receivable Calculate any apparent Overage(Shortage). 225,000 375,000 135,000 Answer Show your calculations in the work area to the right. Failure to show your work will result in no credit for this exercise.

Answer rating: 100% (QA)

To calculate the expected ending accounts receivable balance and identify any apparent overage or sh... View the full answer