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	$	110,110	_______
March	3160		62,920	_______
February	6190		94,380	_______
January	91120		47,190	_______
Total receivables		$	314,600	100%

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

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.

c. If the firm likes to see its bills collected in 31 days, should it be satisfied with the average collection period?

multiple choice 1

• Yes

• No

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