15)

Route Canal Shipping Company has the following schedule for aging of accounts receivable:

Age of Receivables April 30, 2013
(1)	(2)	(3)	(4)
Month of Sales	Age of Account	Amounts	Percent of Amount Due
April	030	$	176,890	_______
March	3160		126,350	_______
February	6190		151,620	_______
January	91120		50,540	_______
Total receivables		$	505,400	100%

a.	Calculate the percentage of amount duefor each month.

Month of Sales	Percent of Amount Due
April		%
March		%
February		%
January		%
Totalreceivables		100 %

b.	If the firm had $1,596,000 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 period

days

c.	If the firm likes to see its bills collected in 43 days, should it be satisfied with the average collection period?

Yes

No

d.	Disregarding your answer to partcand considering the aging schedule for accounts receivable, should the company be satisfied?

Yes

No