Sacred Heart Hospital has the following receivables amounts, listed by age:

a. Complete the aging schedule by filling in the Percentage of Total Value column.

b. Interpret your results.

c. Using these data, estimate the hospital’s average collection period (days in patient accounts receivable). (Hint: Assume that the average age in the first category is 15 days [the midpoint of the range], the average age in the second category is 45 days, and so on. Ignore the receivables over 120 days.)

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Age of Account (Days) Value of Account Percentage of Total Value 0-30 31-60 $5,450,000 3,666,000 61-90 1,278,000 91-120 867,000 Over 120 49,000 $11,310,000