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# Problem 7 11 Aging of accounts receivable LO4 Route Canal Shipping Company has the following schedule for aging of accounts receivable Age of Receivables April

Problem 7-11 Aging of accounts receivable [LO4]

 Route Canal Shipping Company has the following schedule for aging of accounts receivable:
 Age of ReceivablesApril 30, 2013 (1) (2) (3) (4) Month ofSales Age ofAccount Amounts Percent ofAmount 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.
 Average collection period days
 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?

YesNo

May 17 2020 View more View Less