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Meridian Inc. is a manufacturer that sells on net 30 terms to contractors. Below are records of 6 months sales for 2019 and 2020:

1. What conclusions about how the firm manages A/R do you draw based on your computations of DSO for the two years?

2. What conclusions about how the firm manages A/R do you draw based on your aging schedules for the two years?
4. What conclusions do you draw about how the firm manages A/R from your calculations of the uncollected balance percentages?
6. Explain why your conclusions in part c) might give a slightly different picture than those reached in parts a) and .
8. You have been informed that Meridians credit terms in both years were net 30. Are most of Meridians customers paying on time? Paying late? Explain.
10. What steps might Meridians credit personnel take to improve the success of their collection effort?

Chapter 6 Worksheet (Show your work) 2. Meridian Inc. is a manufacturer that sells on net 30 terms to contractors. Below are records of 6 months' sales for 2019 and 2020:- Month- Credit Sales Uncollected Month- Uncollected Credit Sales 2019 Amount 2020 Amounte January $75,000 $5,000 January $100,000 $10,000 February 50,000 5,000 February 90,000 10,000 Marche 100,000 6,000 Marche 80,000 12,000 Aprile 40,000 6,000 Aprile 200,000 12,000+ May 45,000 8,000 Maye 100,000 16,000 June 50,000 12,000 June 150,000 24,000 Total end $42,000 Total end $84,000 of June: of June: Given the information above, complete the following calculations. (Show your work.) Use 180 days to calculate the average daily credit sales. 2019 2020 Calculate DSO: Calculate DSO: Construct an Aging Schedule: Construct an Aging Schedule Calculate Uncollected Balance Percentages: Calculate Uncollected Balance Percentages: Chapter 6 Worksheet (Show your work) 2. Meridian Inc. is a manufacturer that sells on net 30 terms to contractors. Below are records of 6 months' sales for 2019 and 2020:- Month- Credit Sales Uncollected Month- Uncollected Credit Sales 2019 Amount 2020 Amounte January $75,000 $5,000 January $100,000 $10,000 February 50,000 5,000 February 90,000 10,000 Marche 100,000 6,000 Marche 80,000 12,000 Aprile 40,000 6,000 Aprile 200,000 12,000+ May 45,000 8,000 Maye 100,000 16,000 June 50,000 12,000 June 150,000 24,000 Total end $42,000 Total end $84,000 of June: of June: Given the information above, complete the following calculations. (Show your work.) Use 180 days to calculate the average daily credit sales. 2019 2020 Calculate DSO: Calculate DSO: Construct an Aging Schedule: Construct an Aging Schedule Calculate Uncollected Balance Percentages: Calculate Uncollected Balance Percentages

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