The age of an account receivable is the length of time that it has been outstanding. At
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At the end of October, a firm has $12,570 in receivables that are 30 days old, $6850 in receivables that are 60 days old, and $1325 in receivables that are 90 days old. What is the average age of its accounts receivable at the end of October?
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The age of receivables rather than thedollar amount of receivables is to be averaged The relative importance ofeach of the three age classifications is determined by the dollar amount ineach category Hence the weighting factors are the respective dollar amountsof receivables The weighted average age of accounts receivable ...View the full answer
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