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 $ 156,240 _______ March 3160 78,120 _______ February 6190 117,180 _______ January 91120 39,060 _______ Total receivables $ 390,600 100%

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

b. If the firm had $1,512,000 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=

c. If the firm likes to see its bills collected in 36 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?

multiple choice 2 Yes No