ANSWERS TO QUESTIONS

Selling price = 1.4 (Cost of good sold) = 1.4 ($230,000) = $322,000. Sales on account $322,000 Less: Collections 198,000 Uncollected balance 124,000 Balance per ledger 82,000 Apparent shortage $ 42,000 —Enough for a new car EXERCISE 7-5 (15–20 minutes) ................
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