Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivable April 30, 20x1 (1) (2) (3) (4)

help please image text in transcribed
image text in transcribed
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivable April 30, 20x1 (1) (2) (3) (4) Month of Age of Percent of Sales Account Amount Amount Due April 0-30 $227,010 March 31-60 129,720 February 61-90 194,580 January 91-120 92,290 Total receivables $648,600 100 a. Calculate the percentage of amount due for each month. Percent of Amount Due Month of Sales April March February January Total receivables S 100 b. If the firm had $1,692,000 in credit sales over the four-month period, compute the average collection period. Average daily credit sales should be based on a 120-day period. Average collection period days c. If the firm likes to see its bills collected in 45 days, should it be satisfied with the average collection period? No Yes d. Disregarding your answer to part cand considering the aging schedule for accounts receivable, should the company be satisfied? Yes NO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Oxford Handbook Of Entrepreneurial Finance

Authors: Douglas Cumming

1st Edition

0195391241, 978-0195391244

More Books

Students also viewed these Finance questions

Question

Identify a number of current business strategies.

Answered: 1 week ago