Question

The Mighty Power Tool Company has the following accounts on its​ books: Customer Amount Owed​ ($) Age​ (days) ABC ​$47 comma 150 32 DEF 37 comma 500 7 GHI 18 comma 900 14 KLM 72 comma 000 28 NOP 41 comma 450 43 QRS 16 comma 000 11 TUV 84 comma 300 58 WXY 39 comma 500 75 The firm extends credit on terms of 1 divided by 15 comma net 30. Develop an aging schedule using 15​-day increments through 60 ​days, and then indicate any accounts that have been outstanding for more than 60 days.

Answer 1

Accounts receivable more than 60 days = $39,500

% of accounts receivable = 11.07%

Step-by-step explanation:

The following table shows the aging schedule-

Customer Amount Owed​ ($) Age​ (days)

ABC ​$47,150 32

DEF 37,500 7

GHI 18,900 14

KLM 72,000 28

NOP 41,450 43

QRS 16,000 11

TUV 84,300 58

WXY 39,500 75

We have to develop a schedule with a 15 days incremental through 60 days. And we show which customers are falling in that category -

0-15 (DEF + GHI + QRS) = $(37,500 + 18,900 + 16,000) = $72,400

16-30 (KLM) = $72,000

31-45 (ABC + NOP) = $(47,150 + 41,450) = $88,600

46-60 (TUV) = $84,300

Over 60 (WXY) = $39,500

Accounts receivable more than 60 days = $39,500

Percentage of Accounts receivable =
`(39,500)/(72,400+72,000+88,600+84,300+39,500)`

= 11.07%