Question

Route Canal Shipping Company has the following schedule for aging of accounts receivable:Age of Receivables April 30, 20X1 (1) (2) (3) (4) Month of Sales Age of Account Amounts Percent of Amount Due April 0–30 $ 156,240 _______ March 31–60 78,120 _______ February 61–90 117,180 _______ January 91–120 39,060 _______ Total receivables $ 390,600 100% Calculate the percentage of amount due for each month.

Answer 1

Answer:

Explanation:

The formula to compute the percentage of amount due for each month is shown below:

= (Month wise amount due) ÷ (Total receivables) × 100

For April:

= ($156,240) ÷ ($390,600) × 100

= 40%

For March:

= ($78,120) ÷ ($390,600) × 100

= 20%

For February:

= ($117,180) ÷ ($390,600) × 100

= 30%

For January:

= ($39,060) ÷ ($390,600) × 100

= 10%