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 $ 267,030 _______ March 3160 59,340 _______ February 6190 237,360 _______ January 91120 29,670 _______ Total receivables $ 593,400 100%

Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20x1 (2) Age of (1) (3) (4 Percent of Month of Sales Account Amounts Amount Due April $267,030 0-30 31-60 March 59,340 237,360 29,670 February January 61-90 91-120 $593,400 Total receivables 100 a. Calculate the percentage of amount due for each month Percent of Month of Sales Amount Due April % March February % January 100% Total receivables b. If the firm had $1,656,000 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 42 days, should it be satisfied with the average collection period? ONo Yes d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? Yes No