Your accounts receivable clerk, Mary Herman, to whom you pay a salary of $3,495 per month, has just purchased a new Audi. You decided to test the accuracy of the accounts receivable balance of $272,610 as shown in the ledger.
The following information is available for your first year in business.
| (1) |
|
Collections from customers |
|
$461,340 |
| (2) |
|
Merchandise purchased |
|
745,600 |
| (3) |
|
Ending merchandise inventory |
|
163,100 |
| (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.