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Using the following information on the NuVue Set and Top Vision companies to evaluate their receivables policies. Both are manufacturers and sell on terms of 2/10 Net 30.
NuVue customers' receivables outstanding are $1,215,122 eligible for the discount and are expected to take it and the remaining $520,766 is expected to be paid within the 30 days period. Top Vision has $815,867 eligible for discount, $451,331 to be paid by day 30, $260,383 up to 45 days outstanding, $173,589 due in 45 to 60 days and only $34,718 over 60 days.
What is the average collection period for each company?
Complete an aging schedule for each company.
How could the written job requirements help you to manage your work unit?
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