emmanuel07
Aug 26, 2007, 11:25 PM
Im not sure what is the question that needs to be answered. please help .
The customer pays bills 45 days after the invoice date. Because goods are purchased daily, at any time there will be bills outstanding with “ages” ranging from 1-45 days. At any time, the customer will have 30 days worth of purchases or $10,000 outstanding for a period of up to 1 month, and 15 days worth of purchases of $5,000 outstanding for between 1 month and 45 days. The again schedule will appear as follows
Age of account amount
<1 month $10,000
1-2 months $5,000
The customer pays bills 45 days after the invoice date. Because goods are purchased daily, at any time there will be bills outstanding with “ages” ranging from 1-45 days. At any time, the customer will have 30 days worth of purchases or $10,000 outstanding for a period of up to 1 month, and 15 days worth of purchases of $5,000 outstanding for between 1 month and 45 days. The again schedule will appear as follows
Age of account amount
<1 month $10,000
1-2 months $5,000