oot Auto Supply distributes nev Midwest. Toot's credit terms are ■ccounts receivable were past de Account
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.
![Toot Auto Supply distributes new and used automobile parts to local dealers throughout the
Midwest. Toot's credit terms are n/30. As of the end of business on October 31, the following
accounts receivable were past due:
Account
Avalanche Auto
Bales Auto
Derby Auto Repair
Lucky's Auto Repair
Pit Stop Auto
Reliable Auto Repair
Account
Avalanche Auto
September 10
September 24
July 2
Trident Auto
August 25
Valley Repair & Tow
May 23
Determine the number of days each account is past due as of October 31.
Bales Auto
Derby Auto Repair
Lucky's Auto Repair
Pit Stop Auto
Reliable Auto Repair
Trident Auto
Valley Repair & Tow
Due Date
August 15
October 4
Due Date
June 26
August 15
October 4
June 26
September 10
September 24
July 2
August 25
May 23
Amount
$12,000
2,400
3,900
6,600
1,100
9,750
1,800
4,000
Number of Days Past Due](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3060f0c6-2461-4e27-baff-c37b09dfdc64%2F93d5dc56-5388-4d1f-b501-38957ed31ba0%2Fem730ho_processed.png&w=3840&q=75)
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