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

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Accounting

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 $ 110,110 _______
March 3160 62,920 _______
February 6190 94,380 _______
January 91120 47,190 _______
Total receivables $ 314,600 100%

Calculate the percentage of amount due for each month.

If the firm had $1,452,000 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.

If the firm likes to see its bills collected in 31 days, should it be satisfied with the average collection period?

multiple choice 1

Yes

No

Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied?

multiple choice 2

Yes

No

Answer & Explanation Solved by verified expert
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