Problem $7-11($Algo$)$ Aging of accounts receivable $[$L$07-4]$

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

Age $of$ Receivables April $30,201$

$(4)$

Month of Sales

Age of Account

Percent of Amount

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

b$.$ 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.

Average collection period

days

c$.$ If the firm likes to see its bills collected in $31$ 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