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Besley, Inc,. manufactures and sells wallboard for use in construction of modular homes. It sells on net 30 terms to contractors. Following are the last

Besley, Inc,. manufactures and sells wallboard for use in construction of modular homes. It sells on net 30 terms to contractors. Following are the last six months sales and the account receivables balances at the end of June, the present (report) month.

ACCOUNTS RECEIVABLE SCHEDULE

Besley, Inc.

June 30, 2015

MONTH*

CREDIT SALES

UNCOLLECTED AMOUNT

January

$100,000

$10,000

February

90,000

10,000

March

80,000

12,000

April

200,000

12,000

May

100,000

16,000

June

150,000

24,000

June 30 A/R Balance:

$84,000

* Assume all months have 30 days

a.Calculate DSO

b.Calculate the accounts receivable turnover

c.Create the aging schedule

d.What are the uncollected balance percentage

e.Explain why your conclusions in part d might give a slightly different pictures than those reached in parts a-c

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