Firm XX has the following accounts receivable: ? Receivable      Amount due    Days outstanding             A             $11,000               10             B              13,456                35             C              23,110                42             D              13,222                62             E                9,776                31 The firm sells on credit and requires payment on the thirtieth day. What proportion of its sales are overdue and what proportion are more than ten days overdue?

What will be an ideal response?


The Aging Schedule:Days outstanding:   0-30          30-40       40-50     50-60       60+                             $11,000       23,232     23,110       --        13,222                             15.6%           32.9         32.8          --         18.7?Percent overdue: 100% - 15.6 = 84.4%?Percent more than 10 days overdue: 32.8% + 18.7 = 51.5%

Business

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