Your accounts receivable clerk, Ms Oommen, to whom you pay a salary of $6,500 per month, has just purchased a new Cadillac You decided to test the accuracy of the accounts receivable balance of $87,000 as shown in the ledger The following information is available for your first year in business (1)...

Computation of cost of goods sold Merchandise purchased 325000 L ...

Your accounts receivable clerk, Ms. Oommen, to whom you pay a salary of $6,500 per month, has

Question:

Your clerk, Ms. Oommen, to whom you pay a salary of $6,500 per month, has just purchased a new Cadillac. You decided to test the accuracy of the balance of $87,000 as shown in the ledger.
The following information is available for your first year in business.
(1) Collections from customers ......... $203,000
(2) Merchandise purchased .......... 325,000
(3) Ending merchandise inventory ........ 95,000
(4) Goods are marked to sell at 50% above cost

Instructions
Compute an estimate of the ending balance of from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.

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...