Question

12) A company’s collection pattern is also follows: 10% of the sales in the same month. 20% of the sales in the 2nd month. 40% of the sales in the 3rd month. 30& of the sales in the 4th month. The sales of the company for the first there quarters of the year are as follows: Month Quarter I Quarter II Quarter III First 15,000 7,500 22,500 Second 15,000 15,000 15,000 Third 15,000 22,500 7,500 TOTAL 45,000 45,000 45,000 Working days 90 90 90 You are required to calculate the average age of receivables and comment upon the results.​

Answer 1

Answer:

that is perfect masti pari

Answer 2

Answer:The average age of receivable is affected because of sales in fluctuation.

Explanation:

sales                              I quarter     II quarter    III quarter

30% 1st month              4,500            2,250       6,670

70% 2nd month           10,500           10,500     10,500

90% 3rd month            13,500           20,250     6,700

                                   ------------         ------------    ----------

                                    28,500          33,000      24,000

                                          account receivable(Debtors)

Average of receivable is = --------------------------------------- x no of working days

                                                          Sales

1st Quarter  = 28,500/4500 x 90 = 57 Days

2nd Quarter  = 33,000/4500 x 90 = 66 Days

3rd  Quarter  = 24000/4500 x 90 = 48 Days

The average age of receivable is affected because of sales in fluctuation.