United Worldwides accounts receivable totaled $1.75 million on August 31, 2012. The table below gives a breakdown
Question:
United Worldwide’s accounts receivable totaled $1.75 million on August 31, 2012. The table below gives a breakdown of these outstanding accounts on the basis of the month of the initial credit sale. The firm extends net 30, EOM to its credit customers.
Month of Credit SaleAccounts Receivable
August 2012 ............ $ 640,000
July 2012 ............500,000
June 2012 .............164,000
May 2012 .............390,000
April 2012 ............ 56,000
Total (August 31, 2012) ...... $1,750,000
a. Prepare an aging schedule for United Worldwide’s August 31, 2012, accounts receivable balance.
b. Using your findings in part (a), evaluate the firm’s credit and collection activities.
c. What are some probable causes of the situation discussed in part (b)?
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
Step by Step Answer:
a Month of Sale Age of Accounts Accounts Receivable Perce...View the full answer
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
