Question
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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