An accounts receivable aging report shows $38,400 current, $24,600 at 1-30 days, $11,200 at 31-60 days, and $4,800 over 60 days. What amount is more than 30 days past due?
Correct Answer
A) $16,000
Amounts over 30 days are the 31-60 bucket plus the over-60 bucket, totaling $16,000.
Why This Is the Correct Answer
Amounts over 30 days are the 31-60 bucket plus the over-60 bucket, totaling $16,000.
Why the Other Options Are Wrong
Option B: $35,800
$35,800 is above the supported result for receivables aging; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $40,600
$40,600 is above the supported result for receivables aging; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $79,000
$79,000 is above the supported result for receivables aging; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Receivables Aging drawer for Office Manager: label amounts before counting dollars.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section One, Managing Receivables, Track Your Receivables Trend; use the job ledger figures in the stem and recompute the same accounting measure.
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