Accounts receivable management. Given the information below, compute the days in accounts receivable, aging schedule, and accounts receivable as a percentage of net patient revenues for quarter 1 and quarter 2, 20X1. Compare the two quarters to determine if the organization’s collection procedure is improving. (Hint: For simplicity, assume that each month is thirty days. Dollar figures are expressed in thousands.)

Transcribed Image Text:

Quarter 1, 20X1 Sep Aug Jul Quarter Days outstanding 1-30 31-60 61-90 1-90 Net accounts receivable $500 $800 $3,700 $5,000 Net patient revenues $1,000 $5,000 $9,000 $15,000 Quarter 2, 20X1 Dec Nov Oct Quarter Days outstanding 1-30 31-60 61-90 1-90 Net accounts receivable $3,800 $800 $400 $5,000 Net patient revenues $4,000 $5,000 $6,000 $15,000