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15 Route Canal Shipping Company has the following schedule for aging of accounts receivable Age of Receivables April 30, 20X1 Month of Sales Age of
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Route Canal Shipping Company has the following schedule for aging of accounts receivable Age of Receivables April 30, 20X1 Month of Sales Age of Percent of Amount Due Account Amounts April March February January 0-30 31-60 61-90 91-120 $ 235,170 78,390 182,910 26,130 $ 522,600 Total receivables 100% a. Calculate the percentage of amount due for each month Percent of Month of Sales Amount Due April March February January Total receivables 100 % b. If the firm had $1,608,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period Average collection periocd days c. If the firm likes to see its bills collected in 44 days, should it be satisfied with the average collection period? O Yes O No d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? O Yes O NoStep by Step Solution
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