An aging report lists $84,000 current, $32,500 at 1-30 days, $18,600 at 31-60 days, $9,900 at 61-90 days, and $4,800 over 90 days. What amount is over 60 days past due?
Correct Answer
B) $14,700
Over 60 days past due includes the 61-90 and over-90 buckets, totaling $14,700.
Why This Is the Correct Answer
Over 60 days past due includes the 61-90 and over-90 buckets, totaling $14,700.
Why the Other Options Are Wrong
Option A: $13,700
$13,700 is below the supported result for receivables aging; it likely uses the wrong base, period, or account bucket.
Option C: $33,300
$33,300 is above the supported result for receivables aging; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $65,800
$65,800 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 days 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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