Simmons Brick Company has gross sales for the year of $1,216,668 and the sales are distributed evenly across the twelve months. The collections department estimates that 50 percent of the customers pay in the month of sale; 35 percent pay the next month; and the remaining 15 percent pay two months after purchase.
1. Calculate the days sales outstanding for the fourth quarter (October-December, assuming 30 days in each month).
2. Complete an aging schedule for the fourth quarter.
3. Complete an uncollected balances (payments pattern) schedule for the fourth quarter.