70.2K

Verified Solution

Link Copied!

A company began to make credit available to its customers in January.

The following data has been collected from its Accounts Receivable records:

Invoices issued for goods sold in January

Settlements in January for invoices issued in January

Invoices issued for goods sold in February

Settlements in February for invoices issued in January

Settlements in February for invoices issued in February

Invoices issued for goods sold in March

Settlements in March for invoices issued in January

Sale of remaining January debts to debt collector

Settlements in March for invoices issued in February

Settlements in March for invoices issued in March

Invoices issued for goods sold in April

Settlements in April for invoices issued in February

Sale of remaining February debts to debt collector

Settlements in April for invoices issued in March

Settlements in April for invoices issued in April

Invoices issued for goods sold in May

Settlements in May for invoices issued in March

Sale of remaining March debts to debt collector

Settlements in May for invoices issued in April

Settlements in May for invoices issued in May

Invoices issued for goods sold in June

Settlements in June for invoices issued in April

Sale of remaining April debts to debt collector

Settlements in June for invoices issued in May

Settlements in June for invoices issued in June

$$155764$

$$14425$

$$141282$

$$78726$

$$11785$

$$144599$

$$28353$

$$15895$

$$69911$

$$14190$

$$142828$

$$26215$

$$19447$

$$62371$

$$14065$

$$139152$

$$29349$

$$18696$

$$64320$

$$13894$

$$133810$

$$29412$

$$15353$

$$68596$

$$14870$

Determine the following probabilities based on the January to April data $($Probability values should be between $0$ and $1$ and be accurate to at least $3$ decimal places$)$:

Probability that a dolar that has been not collected in the month of the sale will be collected $($whether from the customer or through selling to the debt collector$)$:

Probability that a dolar that has been not collected in the month of the sale, or the next month will be collected $($whether from the customer or through selling to the debt collector$)$:

Determine the following values for the June Accounts $($answer to the nearest dollar$)$:

Accounts receivable balance for June:

Bad debts expense for the period January to June:

Allowance for Doubtful Accounts balance for June:

Answer & Explanation Solved by verified expert

See Answer