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Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 Percent of Amount Due Amounts $
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 Percent of Amount Due Amounts $ 283,500 Month of Age of Sales Account April 0-30 March 31-60 February 61-90 January 91-120 Total receivables 252,000 31,500 $630,000 a. Calculate the percentage of amount due for each month. Percent of Amount Due Month of Sales April March February January Total receivables b. If the firm had $1,680,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period. Average collection period days c. If the firm likes to see its bills collected in 44 days, should it be satisfied with the average collection period? Yes d. Disregarding your answer to part cand considering the aging schedule for accounts recevable, should the company be satisfied? TES
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