Solved: What should be the ending balance in accounts receivable, Accounting Basics

What should be the ending balance in accounts receivable

The given information is available for Small Corporation's first year of operations:

Payment for merchandise purchases          $250,000
Ending merchandise inventory                     110,000
Accounts payable (balance at end of year)     60,000
Collections from customers                         225,000

The balance in accounts payable relates only to merchandise purchases. All merchandise items were marked to sell at 40% above cost. What should be the ending balance in accounts receivable, assuming all accounts are deemed collectible?

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: What should be the ending balance in accounts receivable

Reference No:- TGS01739930

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Maximizing total company income

Q : Write off the cost value or book value

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Q : What return can you expect in a year

Q : What should be the ending balance in accounts receivable

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: What should be the ending balance in accounts receivable

Reference No:- TGS01739930

Recent Questions Asked Accounting Basics

Q : Maximizing total company income

Q : Write off the cost value or book value

Q : Communication of economic events

Q : What return can you expect in a year

Q : What should be the ending balance in accounts receivable

Q : Merger gains and costs

Q : Manufacturing overhead to production

Q : How internet has changed the face of doing business today

Q : Discrete probability distributions

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