Question
In: Accounting
our accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,715 per month,...
our accounts receivable clerk, Mitra Adams, to whom you pay a
salary of $2,715 per month, has just purchased a new Acura. You
decide to test the accuracy of the accounts receivable balance of
$148,420 as shown in the ledger.
The following information is available for your first year
in business.
| (1) | Collections from customers | $358,380 | ||
| (2) | Merchandise purchased | 579,200 | ||
| (3) | Ending merchandise inventory | 162,900 | ||
| (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.
Solutions
Expert Solution
Merchandise used for sale = Purchased – Ending balance
= 579,200 – 162,900
= 416,300
Total cost = Merchandise used for sale + Salary expense
= 416,300 + (2,715 × 12)
= 416,300 + 32,580
= 448,880
Credit sales = Total cost × (1 + 0.40)
= 448,880 × 1.40
= 628,432
Accounts receivable (ending) = Credit sales – Collections
= 628,432 – 358,380
= 270,052 (Answer)
Amount of shortage = Accounts receivable (ending) – Balance in the ledger
= 270,052 – 148,420
= 121,632 (Answer)
ekkarill92 answered 2 hours agoRelated Solutions
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You are Sarineh, a new Accounts Receivable Clerk for Robinson
Paper Supply. Toward the end of the month, Joseph Lee, a very
personable sales associate tells you that the previous A/R clerk
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You know that in order to create a...
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If your salary is $ 1,500 per month and you save $ 500 per month,
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2. How much money should you invest today at 8% interest to
get it to grow to $ 15,000 years?
3. What annual interest rate will make $ 500 increase to $
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10
years
Aging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed...
Aging of Receivables Schedule
The accounts receivable clerk for Kirchhoff Industries prepared
the following partially completed aging of receivables schedule as
of the end of business on November 30:
Not
Days Past Due
Past
Over
Customer
Balance
Due
1-30
31-60
61-90
90
Academy Industries Inc.
3,800
3,800
Ascent Company
5,400
5,400
Zoot Company
7,000
7,000
Subtotals
667,600
403,200
146,900
64,100
33,400
20,000
The following accounts were unintentionally omitted from the
aging schedule and not included in the subtotals above:
Customer...
Aging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed...
Aging of Receivables Schedule
The accounts receivable clerk for Kirchhoff Industries prepared
the following partially completed aging of receivables schedule as
of the end of business on November 30:
Not
Days Past Due
Past
Over
Customer
Balance
Due
1-30
31-60
61-90
90
Academy Industries Inc.
2,800
2,800
Ascent Company
4,800
4,800
Zoot Company
9,000
9,000
Subtotals
910,500
550,000
200,300
87,400
45,500
27,300
The following accounts were unintentionally omitted from the
aging schedule and not included in the subtotals above:
Customer...
Aging of Receivables Schedule The accounts receivable clerk for Evers Industries prepared the following partially completed...
Aging of Receivables Schedule
The accounts receivable clerk for Evers Industries prepared the
following partially completed aging of receivables schedule as of
the end of business on November 30:
Not
Days Past Due
Past
Over
Customer
Balance
Due
1-30
31-60
61-90
90
Acme Industries Inc.
5,500
5,500
Alliance Company
4,600
4,600
Zollinger Company
11,100
11,100
Subtotals
759,300
458,600
167,000
72,900
38,000
22,800
The following accounts were unintentionally omitted from the
aging schedule and not included in the subtotals above:
Customer...
The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule...
The accounts receivable clerk for Evers Industries prepared the
following partially completed aging of receivables schedule as of
the end of business on July 31:
1
A
B
C
D
E
F
G
2
Days Past Due
Days Past Due
Days Past Due
Days Past Due
3
Customer
Balance
Not Past Due
1-30
31-60
61-90
Over 90
4
Acme Industries Inc.
3,300.00
3,300.00
5
Alliance Company
4,800.00
4,800.00
6
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
~~~~~
7
Zollinger Company
5,000.00...
Aging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed...
Aging of Receivables Schedule
The accounts receivable clerk for Kirchhoff Industries prepared
the following partially completed aging of receivables schedule as
of the end of business on November 30:
Not
Days Past Due
Past
Over
Customer
Balance
Due
1-30
31-60
61-90
90
Academy Industries Inc.
4,900
4,900
Ascent Company
4,000
4,000
Zoot Company
10,200
10,200
Subtotals
806,000
486,800
177,300
77,400
40,300
24,200
The following accounts were unintentionally omitted from the
aging schedule and not included in the subtotals above:
Customer...
Aging of Receivables Schedule The accounts receivable clerk for Evers Industries prepared the following partially completed...
Aging of Receivables Schedule
The accounts receivable clerk for Evers Industries prepared the
following partially completed aging of receivables schedule as of
the end of business on November 30:
Not
Days Past Due
Past
Over
Customer
Balance
Due
1-30
31-60
61-90
90
Acme Industries Inc.
3,600
3,600
Alliance Company
6,000
6,000
Zollinger Company
8,900
8,900
Subtotals
873,000
527,200
192,100
83,800
43,700
26,200
The following accounts were unintentionally omitted from the
aging schedule and not included in the subtotals above:
Customer...
he accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule...
he accounts receivable clerk for Kirchhoff Industries prepared
the following partially completed aging of receivables schedule as
of the end of business on November 30:
Not
Days Past Due
Past
Over
Customer
Balance
Due
1-30
31-60
61-90
90
Academy Industries Inc.
2,500
2,500
Ascent Company
4,600
4,600
Zoot Company
8,600
8,600
Subtotals
709,800
428,700
156,200
68,100
35,500
21,300
The following accounts were unintentionally omitted from the
aging schedule and not included in the subtotals above:
Customer
Balance
Due Date
Conover...
What is the relationship between the amount of deposite you pay per month , and the...
What is the relationship between the amount of deposite you pay per
month , and the future increases in expenses?
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