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Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of Amount Due Age of Receivables April 30, 20x1 (1)
Route Canal Shipping Company has the following schedule for aging of accounts receivable: (4) Percent of Amount Due Age of Receivables April 30, 20x1 (1) (2) (3) Month of Age of Sales Account Amounts April 0-30 $ 189,000 March 31-60 135,000 February 61-90 162,000 January 91-120 Total receivables $ 540,000 54,000 100% a. Calculate the percentage of amount due for each month. Percent of Amount Due % % Month of Sales April March February January Total receivables % % 100 % b. If the firm had $1,620,000 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
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