Tippecanoe Industries has the following accounts receivable aging: 0-30 days, $7,351,000; 31-60 days

Finance Dec 26, 2020

Tippecanoe Industries has the following accounts receivable aging: 0-30 days, $7,351,000; 31-60 days. $1,100,000; 61-90 days, $480,000; 91-120 days. $134,000; Total Accounts Receivable, $9,074,000. The company sells on terms of net 30. What is the percentage of total accounts receivable which is past-due? A. 19.0% B. 25.3% OC. 74.7% D. 81.0%

Expert Solution

Answer: A. 19 %

Age of Receivables	Amount
31-60 days	$ 1,109,000
61-90 days	480,000
91-120 days	134,000
Total	$ 1,723,000

Percentage of total accounts receivable which is past due = $ 1,723,000 / $ 9,074,000 = 18.99 % or 19 %

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