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Route Canal Shipping Company has the following schedule for aging of accounts receivable: Percent of Amount Due Age of Receivables April 30, 2ex1 (2) (3)
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Percent of Amount Due Age of Receivables April 30, 2ex1 (2) (3) Month of Age of Sales Account Amounts April 8-30 $ 110, 110 March 31-60 62,920 February 61-99 94,380 January 91-120 47,190 Total receivables $ 314,600 100% a. Calculate the percentage of amount due for each month. Month of Sales April March Percent of Amount Due 96 96 96 February January Total receivables 96 100% b. If the firm had $1,452,000 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 31 days, should it be satisfied with the average collection period? Yes No d. Disregarding your answer to part cand considering the aging schedule for accounts receivable, should the company be satisfied? Yes O No
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