Accounts receivable management an evaluation of the books


Accounts receivable management An evaluation of the books of Blair Supply, which follows, gives the end-of-year accounts receivable balance, which is believed to consist of amounts originating in the months indicated. The company had annual sales of $2.4 million. The firm extends 30-day credit terms.

Month of origin Accounts receivable

July $ 3,875

August 2,000

September 34,025

October 15,100

November 52,000

December 193,000

Year-end accounts receivable $300,000

a. Use the year-end total to evaluate the firm’s collection system.

b. If 70% of the firm’s sales occur between July and December, would this information affect the validity of your conclusion in part a? Explain.

Request for Solution File

Ask an Expert for Answer!!
Business Management: Accounts receivable management an evaluation of the books
Reference No:- TGS0973437

Expected delivery within 24 Hours