Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (2) (3) Month of Age of Salon Account Amounts April 0-30 $223,040 March 31-60 83,640 February 61-90 195,160 January 91-120 55,760 Total receivables $557,600 (4) Percent of Amount Due 1008 a. Calculate the percentage of amount due for each month. Percent of Amount Due % Month of Sales April March February January Total receivables % % 100% b. If the firm had $1,632,000 in credit sales over the four-month period, compute the average collection period. Average daily credit soles should be based on a 120 day period. Average collection period days
c. If the firm likes to see its bills collected in 40 days, should it be satisfied with the average collection period? No Yes d. Disregarding your answer to part cand considering the aging schedule for accounts receivable, should the company be satisfied? Yes No