21. A credit card company is attempting to determine a more effective set of credit control policies. It has traditionally classified all its accounts receivables into one of the five categories listed below:

Based on the historical data, the company has derived the following transition matrix describing the behaviour of various categories on a weekly basis.

Currently, the company has the following accounts receivables in various categories:

You are required to calculate the expected amounts which may eventually be (i) collected, and (ii) defaulted.

Transcribed Image Text:

Accounts receivable category 2 12345 Status of accounts receivable 0-30 days late 31-90 days late 91 + days late paid in full defaulted