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	$	244,640	_______
March	3160		122,320	_______
February	6190		183,480	_______
January	91120		61,160	_______
Total receivables		$	611,600	100%

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

Month of Sales	Percent of Amount Due
April		%
March		%
February		%
January		%
Total receivables	100	%

b. If the firm had $1,668,000 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 43 days, should it be satisfied with the average collection period?

multiple choice 1

• No

• Yes

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

multiple choice 2

• Yes

• No