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:

Small Businesses

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