15. Route Canal Shipping Company has the following schedule for aging of accounts receivable: ...
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Accounting
15. 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
030
$
227,010
_______
March
3160
129,720
_______
February
6190
194,580
_______
January
91120
97,290
_______
Total receivables
$
648,600
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 $1,692,000 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
1
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