Cutsheetz Company collects 50 percent of its receivables in 10 days or fewer, 31 percent in 11 to 30 days, 7 percent in 31 to 45 days, 7 percent in 46 to 60 days, and 5 percent in more than 60 days. The company has $1,410,000 in accounts receivable. Prepare an aging schedule for Cutsheetz Company. (Round value of account answers to the nearest whole dollar, e.g. 5,275 and % of total account answers to 0 decimal places, e.g. 12%.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Age of Accounts (in days) Value of Account % of Total Account 0-10 $ % 11-30 $ % 31-45 $ % 46-60 $ % Over 60 $ % Total $ 100%
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Cutsheetz Company collects 50 percent of its receivables in 10 days or fewer, 31 percent in 11 to 30 days, 7 percent in 31 to 45 days, 7 percent in 46 to 60 days, and 5 percent in more than 60 days. The company has $1,410,000 in
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)
| Age of Accounts (in days) | Value of Account | % of Total Account | ||
| 0-10 | $ | % | ||
| 11-30 | $ | % | ||
| 31-45 | $ | % | ||
| 46-60 | $ | % | ||
| Over 60 | $ | % | ||
| Total | $ | 100% |
Step by step
Solved in 2 steps
