Monitoring of Receivables The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January

Question:

Monitoring of Receivables The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were a follows:
Month Credit Sales
January........$ 50,000
February.......100,000
March........120,000
April.............105,000
May........140,000
June........160,000
Throughout this entire period, the firm’s credit customers maintained a constant payments pattern: 20% paid in the month of sale, 30% paid in the month following the sale, and 50% paid in the second month following the sale.
a. What was Fogler’s receivables balance at the end of March and at the end of June?
b. Assume 90 days per calendar quarter. What were the average daily sales (ADS) and days sales outstanding (DSO) for the first quarter and for the second quarter? What were the cumulative ADS and DSO for the first half-year?
c. Construct an as of June 30. Use amount ages of 0-30, 31-60, and 61-90 days.
d. Construct the uncollected balances schedule for the second quarter as of June 30.

Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...