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%

a. Calculate the percentage of amount due for each month.

b. If the firm had $1,656,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period.

c. If the firm likes to see its bills collected in 42 days, should it be satisfied with the average collection period?

	No
	Yes

d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied?

	Yes
	No