Question

15)Route Canal Shipping Company has the following schedule for aging of accounts receivable:  Age of Receivables
April 30, 2013(1)(2)(3)(4)Month of
SalesAge of
AccountAmountsPercent of
Amount Due  April0–30$176,890  _______  March31–60 126,350  _______  February61–90 151,620  _______  January91–120 50,540  _______         Total receivables $505,400  100%      a.Calculate the percentage of amount due for each month.  Month of SalesPercent of Amount Due  April  %   March  %   February  %   January  %         Total receivables 100 %        b.If the firm had $1,596,000 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 43 days, should it be satisfied with the average collection period?  YesNo  d.Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied?  YesNo

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