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    Preparing an Aging Schedule for Accounts Receivable

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    Laura's Ad Agency accounts receivable totaled $451,000 on February 28, 2011. An aging summary of receivables at this date follows:

    End of Month Amount
    February 2011 $250,000
    January 2011 100,000
    December 2010 50,000
    November 2010 30,000
    October 2010 and before 21,000

    The firm extends 30-day credit terms to all of its customers.

    a) prepare an aging schedule for Laura's agency
    b) evaluate the collection performance
    c) what percentage is overdue

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    Solution Summary

    Laura's Ad Agency accounts receivable totaled $451,000 on February 28, 2011. An aging summary of receivables at this date follows:

    End of Month Amount
    February 2011 $250,000
    January 2011 100,000
    December 2010 50,000
    November 2010 30,000
    October 2010 and before 21,000

    The firm extends 30-day credit terms to all of its customers.

    a) prepare an aging schedule for Laura's agency
    b) evaluate the collection performance
    c) what percentage is overdue

    $2.19

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