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Chapter 15 Assignmer Consider the case of Choco Cookie Company: Choco Cookie Company sells on terms of 1/15 net 30. The company's management is concerned

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Chapter 15 Assignmer Consider the case of Choco Cookie Company: Choco Cookie Company sells on terms of 1/15 net 30. The company's management is concerned that its investment in accounts receivable is unintentionally growing due to its customers' late payments, called "arrearages." In anticipation of being asked about this by the company treasurer, Alyssa collected a sample of accounts receivable information. The sample represents 25% of the company's accounts receivable outstanding Assist Alyssa by organizing the data into an aging schedule using the categories shown. Then calculate the volume of accounts receivable outstanding and the percentage of total receivables outstanding in each category to complete the statements follow Account Number 2667 Amount Due $321.80 1,444.70 315.60 1816 2083 2748 358 40 472.80 2796 1503 Invoice Date September 30 August 12 November 8 October 23 November 5 October 3 September 25 August 27 September 14 July 20 Total: 1539 2783 454.30 3,933.80 2,306.75 1,068.50 548.75 $11,225,40 2522 1659 Choco Cookie Company Aging Schedule, November 30 Days Late Period Arrearage Cumulative Arrearage 1-30 days $788.40 $788.40 31-60 days 1,601.10 61-90 days 91+ days 11,225.40 An aging schedule provides insights into the condition of a firm's accounts receivable. In this case, using the preceding sample data, the percentage of receivables that are 61-90 days and 91 days late are and respectively. This has the potential to be a receivables and working capital management problem for Choco, because it means that the total dollar value for all of its accounts receivable that are more than 31 days late is Remember the preceding sample data represents 25% of Choco's total volume of accounts receivable) Grado It Now Save & Continue Continue without saving

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