Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (3) Amounts (1) Month of Sales April March February January Total receivables Month of Sales a. Calculate the percentage of amount due for each month. April March February January (2) Age of Account 0-30 31-60 61-98 91-120 Total receivables Percent of Amount Due Average collection period $ 131,250 93,750 112,500. 37,500 $ 375,000 % 96 % 96 100 % (4) Percent of Amount Due b. If the firm had $1,500,000 in credit sales over the four-month period, compute the average collection period. Average dally credit sales should be based on a 120-day period. days 100%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Route Canal Shipping Company has the following schedule for aging of accounts receivable:
(1)
Month of Sales
April
March
February
January
Total receivables
Month of Sales
April
March
a. Calculate the percentage of amount due for each month.
February
January
Age of Receivables April 30, 20X1
(3)
Amounts
Total receivables
(2)
Age of Account
10-30
31-60
61-98
91-120
Percent of
Amount Due
Average collection period
196
$ 131,250
93,750
112,500
37,500
$ 375,000
100 %
(4)
Percent of Amount Due
b. If the firm had $1,500,000 in credit sales over the four-month period, compute the average collection period. Average dally credit
sales should be based on a 120-day period.
days
100%
Transcribed Image Text:ces Route Canal Shipping Company has the following schedule for aging of accounts receivable: (1) Month of Sales April March February January Total receivables Month of Sales April March a. Calculate the percentage of amount due for each month. February January Age of Receivables April 30, 20X1 (3) Amounts Total receivables (2) Age of Account 10-30 31-60 61-98 91-120 Percent of Amount Due Average collection period 196 $ 131,250 93,750 112,500 37,500 $ 375,000 100 % (4) Percent of Amount Due b. If the firm had $1,500,000 in credit sales over the four-month period, compute the average collection period. Average dally credit sales should be based on a 120-day period. days 100%
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