Question

QUESTION 25 It is the credit policy of the Matthew Corporation to require credit customers to pay within 30 days from the date they purchase merchandise. An analysis of the Corporation's August 31 accounts receivable subsidiary ledger resulted in the following information. Barber Corporation owes $2,500 for merchandise sold to them on August 12. Carile Company owes $4,510 for merchandise sold to them on July 18. Diorio Corporation owes $2,870 for merchandise sold to them on March 14. Eugene Company owes $1,330 for merchandise sold to them on June 13. French Incorporated owes $1,770 for merchandise sold to them on April 18. Grablick Company owes $3,700 for merchandise sold to them on May 15. Determine the dollar amount of customer's account receivable between 31 - 60 days past due on August 31. a. $0 b. $1,330 c. $2.500 d. $3,830

Answer 1

Credit period for the Matthew Corporation is 30 days.

Accounts receivable position on 31st August - Debtors Ageing

			31 August 2019		Ageing
Name of Customer	Date of Sale	Due Date	No. of days overdue till 31 August	Amount	0-30	30-60	60-180	180+
Barber Corporation	12 August 2019	11 September 2019	Not yet due	$       2,500	$     2,500	$           -	$           -	$ -
Charlie Company	18 July 2019	17 August 2019	15.00	$       4,510	$     4,510	$           -	$           -	$ -
Diorio Corporation	14 March 2019	13 April 2019	141.00	$       2,870	$           -	$           -	$     2,870	$ -
Eugene Company	13 June 2019	13 July 2019	50.00	$       1,330	$           -	$     1,330	$           -	$ -
French Incorporated	18 April 2019	18 May 2019	106.00	$       1,770	$           -	$           -	$     1,770	$ -
Grablick Company	15 May 2019	14 June 2019	79.00	$       3,700	$           -	$           -	$     3,700	$ -
Total receivable as on 31 August 2019				$     16,680	$     7,010	$    1,330	$     8,340	$ -

So the debtors having due more than 30 to 60 days is $1,330. Hence the correct answer is $1,330.