Problem
It is always a good idea to verify amounts in the general ledger just to be sure there are no problems or stupid mistakes (in the real world, there is no answer book).
So test the accuracy of the Accounts Receivable balance at the end of the first year of operations for the Poston Corp, using whatever is useful from the following information.
The A/R ending balance in the General Ledger is $27,300
Collections from customers, $68,000
Merchandise purchased, $83,000
Ending merchandise inventory, $36,500
Goods sell at 60% above cost.
All sales are made on account.
Compute ending A/R balance and any shortage or overage.