Question
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 | $ 131,250 | _______ |
March | 3160 | 93,750 | _______ |
February | 6190 | 112,500 | _______ |
January | 91120 | 37,500 | _______ |
Total receivables | $ 375,000 | 100% |
Calculate the percentage of amount due for each month.
If the firm had $1,500,000 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.
If the firm likes to see its bills collected in 35 days, should it be satisfied with the average collection period?
multiple choice 1
Yes
No
Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied?
multiple choice 2
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