Commercial Supply Corp

question 22

Multiple Choice

Commercial Supply Corp.bills its accounts on terms of 2/10 net 30.The firm's accounts receivable include $200,000 that has been outstanding for ten or fewer days,$126,000 outstanding for 11 to 30 days,$98,000 outstanding for 31 to 40 days,$12,000 outstanding for 41 to 50 days,$20,000 outstanding for 51 to 60 days,and $7000 outstanding for more than 60 days.Is the aging schedule for Commercial Supply Corp.bottom heavy?

• A)No,since 70% of the outstanding sales are on time and the percentage of long-term outstanding payments are low.
• B)Yes,since the percentage of payments that are late is greater than the percentage of payments that are on time.
• C)No,since since the percentage of payments that are late are greater than the percentage of payments that are on time.
• D)Yes,since the percentage of payments that are on time are greater than the percentage of payments that are late.
• E)No,since the percentage of payments that are on time is equal to the percentage of payments that are late.

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Definitions:

Public Works Administration

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Filipino Repatriation Act

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The people native to or citizens of the Philippines, an archipelagic country in Southeast Asia.

Roosevelt's Reelection

pertains to the event in which Franklin D. Roosevelt was reelected as President of the United States, particularly notable for his four terms from 1933 to 1945.