) Construct an aging schedule as of March 31 2018. Use account ages of 0-30, iv) Construct the uncollected balances schedule for the second quarter of 2. All questions carry equal marks Question 1 a) What are the four elements of a firm's credit policy? To what extent can firms set their own credit policies as opposed to having to accept policies that are dictated by the competition (8 marks) b) The Kijabe Electre Company, a small manufacturer of cell phone began operations on October 1, 2017. Its credit sales for the first 6 months of operations were as follows: Month Credit sales October 2017 Kshs 5,000,000 November 2017 10,000,000 December 2017 12,000,000 January 2018 10,500,000 February 2018 14,000,000 March 2018 16,000,000 Throughout this entire period, the firm's credit customers maintained a constant payments pattern: Twenty percent paid in the month of sale, 30% paid in the month following the sale and 50% paid in the second month following the sale. Required: i) What was Kijabe's receivable balance at the end of December 2017 and at the end of March 2017 (6 marks) ii) Assume 90 days per calendar a quarter. What were the average daily sales (ADS) and days sales outstanding (DSO) for the first quarter and for the second quarter? What were the cumulative ADS and DSO for the first half-year? (6 marks) Page 1 of 4 31-60, and 61 -90 days. March 31, 2018. (4 marks) Question ? IT