Problem:
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