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Chapter 3: 11BP_a (page 221)

Route Canal Shipping Company has the following schedule for aging of accounts receivable:

a. Fill in column (4) for each month.

Age of receivables April 30 20X1

1

2

3

4

Month of sales

Age of accounts

Amounts

Percent of amount due

April

0-30

\(131,250

____

March

31-60

\)93,750

____

February

61-90

\(112,500

____

January

91-120

\)37,500

____

Total receivables

$375,000

100%

Short Answer

Expert verified

The percentages of amount dues are 35% in April, 25% in March, 30% in February, and 10% in January.

Step by step solution

01

Formula for calculating the percent of amount dues

Percentofamountdue=AccountsreceivableinamonthTotalaccountsreceivable脳100

02

Explanation for requirement

Month of sales

Age of accounts

Amounts

Percent of amount due

April

0-30

$131,250

35%

March

31-60

$93,750

25%

February

61-90

$112,500

30%

January

91-120

$37,500

10%

Total receivables

$375,000

100%

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Most popular questions from this chapter

Explain the similarities and differences of lockbox systems and regional collection offices

Global Services is considering a promotional campaign that will increase annual credit sales by \(450,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows:

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2X

Inventory

6X

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