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Problem 7 - 1 1 ( Algo ) Aging of accounts receivable [ L 0 7 - 4 ] Route Canal Shipping Company has the
Problem Algo Aging of accounts receivable L
Route Canal Shipping Company has the following schedule for aging of accounts receivable:
Age Receivables April
Month of Sales
Age of Account
Percent of Amount
a Calculate the percentage of amount due for each month.
b If the firm had $ in credit sales over the fourmonth period, compute the average collection period.
Average daily credit sales should be based on a day period.
Average collection period
days
c If the firm likes to see its bills collected in days, should it be satisfied with the average collection period?
Yes
No
d Disregarding your answer to part and considering the aging schedule for accounts receivable, should the
company be satisfied?
Yes
No
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