Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables...

Transcribed Image Text:

Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 201 (2) Age of (1) Month of (3) (4) Percent of Sales Account Amounts Amount Due April 0-30 $ 120,540 March 31-60 February 61-90 86,100 103,320 January 91-120 34,440 Total receivables $ 344,400 100% a. Calculate the percentage of amount due for each month. Percent of Month of Sales Amount Due April % March % February % January % Total receivables 100 % b. If the firm had $1,476,000 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 33 days, should it be satisfied with the average collection period? Yes No d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? Yes No Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 201 (2) Age of (1) Month of (3) (4) Percent of Sales Account Amounts Amount Due April 0-30 $ 120,540 March 31-60 February 61-90 86,100 103,320 January 91-120 34,440 Total receivables $ 344,400 100% a. Calculate the percentage of amount due for each month. Percent of Month of Sales Amount Due April % March % February % January % Total receivables 100 % b. If the firm had $1,476,000 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 33 days, should it be satisfied with the average collection period? Yes No d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? Yes No