Question

Your accounts receivable clerk, ms. sarah, to whom you pay a salary of $15,275 per month, has just purchased a new cadillac. you decided to test the accuracy of the accounts receivable balance of $204,450 as shown in the ledger. the following information is available for your first year in business: (1) collections from customers $477.050 (2) merchandise purchased 763.750 (3) ending inventory 223.250 (4) goods are marked to sell at 50% 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. The ending balance of accounts receivable from customers apparent shortage el supp( 1 57°f eng ë"")) o?

Answer 1

To estimate the ending balance of accounts receivable from customers and any apparent shortages, we need to consider collections, merchandise purchases, and the marked selling price. By calculating the cost of goods sold, sales revenue, and comparing with the ledger balance, we can find the estimate and apparent shortage.

Step-by-step explanation:

To estimate the ending balance of accounts receivable from customers, we need to consider the collections from customers, merchandise purchased, and the goods marked to sell at 50% above cost.

First, we calculate the cost of goods sold: Merchandise purchased - Ending inventory = Cost of goods sold. In this case, $763,750 - $223,250 = $540,500.

Next, we calculate the sales revenue: Cost of goods sold + 50% of Cost of goods sold = Sales Revenue. In this case, $540,500 + ($540,500 * 0.5) = $810,750.

Finally, we calculate the estimate of the ending balance of accounts receivable from customers: Sales Revenue - Collections from customers = Ending balance of accounts receivable. In this case, $810,750 - $477,050 = $333,700.

To calculate the apparent shortage, we compare the estimate of the ending balance of accounts receivable from customers with the balance shown in the ledger: Apparent shortage = Ending balance in ledger - Estimate of ending balance. In this case, $204,450 - $333,700 = -$129,250.