Route Canal Shipping Company has the following schedule for aging of accounts receivable.Please see bottom for table a. Fill in column (4) for each…

Route Canal Shipping Company has the following schedule for aging of accountsreceivable…Please see bottom for tablea. Fill in column (4) for each month.b. If the firm had $1,440,000 in credit sales over the four-month period, computethe average collection period. Average daily sales should be based on a120-day period.c. If the firm likes to see its bills collected in 30 days, should it be satisfied withthe average collection period?d. Disregarding your answer to part c and considering the aging schedule foraccounts receivable, should the company be satisfied?e. What additional information does the aging schedule bring to the companythat the average collection period may not show?Age of Receivables 30-Apr-07 1 2 3 4 Month of Sales Age of Account Amounts Percent of Amount Due April 0-30 $105,000 _________March 31-60 $60,000 _________February 61-90 $90,000 _________January 91-120 $45,000 _________Total receivables $300,000 100%

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