A partial aging of accounts receivable for a cleaning service is given in the accompanying table. Fill in the missing parts of the following aging schedule for the cleaning service. (Round value of account answers to the nearest whole dollar, e.g. 5,275 and % of total account answers to 1 decimal place, e.g. 12.1%.) Age of Accounts (in days) Value of Account % of Total Account 10 $262,000 % 30 $131,000 % 45 $ % 60 $57,000 % 75 $27,000 % Total $670,000 100.0% Determine the firm’s effective days’ sales outstanding. (Round answer to 1 decimal place, e.g. 12.2.) effective days' sales outstanding is ______ days. How does it compare with the industry average of 36 days? The firm is_____________efficient than other firms in the industry.
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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.
A partial aging of
| Age of Accounts (in days) | Value of Account | % of Total Account | ||
| 10 | $262,000 | % | ||
| 30 | $131,000 | % | ||
| 45 | $ | % | ||
| 60 | $57,000 | % | ||
| 75 | $27,000 | % | ||
| Total | $670,000 | 100.0% |
Determine the firm’s effective days’ sales outstanding. (Round answer to 1 decimal place, e.g. 12.2.)
| effective days' sales outstanding is ______ days. |
How does it compare with the industry average of 36 days?
| The firm is_____________efficient than other firms in the industry. |
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