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Unformatted text preview: collected, so none of January's sales remained outstanding. Thus, the receivables account totals $250 at the end of March, which is consistent with the answer to part C. Note that the end-of-June aging schedule suggests that customers are paying more slowly than in the earlier quarter. However, we know that the payment pattern has remained constant, so the firm's customers' payment performance has not changed. Again, a seasonally fluctuating sales level is the cause of the problem: aging schedules give incorrect signals if sales are trending up or down. If sales were a constant $200 in each month, then both aging schedules would indicate that 78 percent of receivables were 0 30 days old and 22 percent were 31 - 60 days old....
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- Spring '08