An Ad Agency's accounts receivable totaled $451,000 on January 30,2003. An aging summary of receivables at this date follows:
End of the Month:
Jan., 2003 $250,000
Dec., 2002 $100,000
Nov., 2002 $50,000
Oct., 2002 $30,000
Sept., 2002 before $21,000
Total $451,000
The firm extends 30-day credit terms to all its credit customers.
(a) Prepare an aging schedule for Ad Agency
(b) Evaluate the firm's collection performance.