Reference no: EM132781910

Question - Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,530 per month, has just purchased a new Cadillac. You have decided to test the accuracy of the accounts receivable balance of $85,650 shown in the general ledger.

The following information is available for your first year in business:

1. Collections from customers are $196,300.

2. Merchandise purchased totalled $321,800.

3. Ending merchandise inventory is $98,250.

4. Goods are marked to sell at 40% above cost.

Required - Estimate 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.