Calculate the percentage of amount due for each month

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Reference no: EM131155814

Problem :Aging of accounts receivable
Route Canal Shipping Company has the following schedule for aging of accounts receivable:

Age of Receivables April 30, 2013
(1)	(2)	(3)		(4)
Month of Sales	Age of Account	Amounts		Percent of Amount Due
April	0-30	$	212,220	_______
March	31-60		94,320	_______
February	61-90		141,480	_______
January	91-120		23,580	_______

Total receivables		$	471,600	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 $1,572,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period.

c. If the firm likes to see its bills collected in 41 days, should it be satisfied with the average collection period?
• Yes
• No

d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied?
• Yes
• No

Reference no: EM131155814

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