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	0–30	$	267,030	_______
March	31–60		59,340	_______
February	61–90		237,360	_______
January	91–120		29,670	_______
Total receivables		$	593,400	100%

a. Calculate the percentage of amount due for each month.

b. If the firm had $1,656,000 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 42 days, should it be satisfied with the average collection period?

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

Answer rating: 100% (QA)

a To calculate the percentage of the amount due for each month we need to divide the amounts by the ... View the full answer