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 20 $12,000 Bales Auto October 10 2,400 Derby Auto Repair June 22 3,900 Lucky's Auto Repair September 20 6,600 Pit Stop Auto September 22 1,100 Reliable Auto Repair July 8 9,750 Trident Auto August 18 1,800 Valley Repair & Tow May 25 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 20 fill in the blank 1 Bales Auto October 10 fill in the blank 2 Derby Auto Repair June 22 fill in the blank 3 Lucky's Auto Repair September 20 fill in the blank 4 Pit Stop Auto September 22 fill in the blank 5 Reliable Auto Repair July 8 fill in the blank 6 Trident Auto August 18 fill in the blank 7 Valley Repair & Tow May 25 fill in the blank 8
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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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 20 $12,000 Bales Auto October 10 2,400 Derby Auto Repair June 22 3,900 Lucky's Auto Repair September 20 6,600 Pit Stop Auto September 22 1,100 Reliable Auto Repair July 8 9,750 Trident Auto August 18 1,800 Valley Repair & Tow May 25 4,000 Determine the number of days each account is past due as of October 31.
Account Due Date Number
of Days
Past DueAvalanche Auto August 20 fill in the blank 1 Bales Auto October 10 fill in the blank 2 Derby Auto Repair June 22 fill in the blank 3 Lucky's Auto Repair September 20 fill in the blank 4 Pit Stop Auto September 22 fill in the blank 5 Reliable Auto Repair July 8 fill in the blank 6 Trident Auto August 18 fill in the blank 7 Valley Repair & Tow May 25 fill in the blank 8
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