Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 282,240 _______ March 3160 105,840 _______ February 6190 246,960 _______ January 91120 70,560 _______ Total receivables $ 705,600 100% a. Calculate the percentage of amount due for each month.

b. If the firm had $1,728,000 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 48 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge Ch

11th Edition

1265083924, 9781265083922

More Books

Students also viewed these Accounting questions