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Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (1) (2) (3) (4) Month of
Route Canal Shipping Company has the following schedule for aging of accounts receivable:
Age of Receivables April 30, 20X1 | |||||
(1) | (2) | (3) | (4) | ||
Month of Sales | Age of Account | Amounts | Percent of Amount Due | ||
April | 030 | $ | 282,240 | _______ | |
March | 3160 | 105,840 | _______ | ||
February | 6190 | 246,960 | _______ | ||
January | 91120 | 70,560 | _______ | ||
Total receivables | $ | 705,600 | 100% | ||
a. Calculate the percentage of amount due for each month.
month of sales | percent of amount due |
april | |
march | |
feb | |
january | |
total receivable | 100% |
b. If the firm had $1,728,000 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-?
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