Accounts receivable Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Due date: Due date is the maturity date on note/account, on due date the borrower is supposed to pay the debt. Past due: Past due is the number of days of not receiving/making payment on the overdue account. The number of days each account is past due as of October 31.

Question

Number of Days Past Due 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 Due Date Amount Avalanche Auto August 14 $12,000 Bales Auto October 3 2,400 Derby Auto Repair June 25 3,900 Lucky's Auto Repair September 11 6,600 Pit Stop Auto September 25 1,100 Reliable Auto Repair July 2 9,750 Trident Auto August 24 1,800 Valley Repair & Tow May 22 4,000 Determine the number of days each account is past due as of October 31. Account Due Date Number of Days Past Due Avalanche Auto August 14 Bales Auto October 3 Derby Auto Repair June 25 Lucky's Auto Repair September 11 Pit Stop Auto September 25 Reliable Auto Repair July 2 Trident Auto August 24 Valley Repair & Tow May 22

Answer 1

Question

Chapter 8, Problem 8.7EX

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Due date:

Due date is the maturity date on note/account, on due date the borrower is supposed to pay the debt.

Past due:

Past due is the number of days of not receiving/making payment on the overdue account.

The number of days each account is past due as of October 31.

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