Question

It is the credit policy of the Trinh Corporation to require credit customers to pay within 30 days from the date they purchase merchandise. An analysis of the Corporation's October 31 accounts receivable subsidiary ledger resulted in the following information. Auburn Company owes $4,100 for merchandise sold to them on July 8. Brown Incorporated owes $5,000 for merchandise sold to them on September 12. Green Corporation owes $4,400 for merchandise sold to them on October 10. Red Company owes $2,900 for merchandise sold to them on August 18. Yellow Corporation owes $3,300 for merchandise sold to them on June 15. Blue Company owes $5,300 for merchandise sold to them on May 20.

Determine the dollar amount of customer's account receivable between 31-60 days past due on October 31.

a. $5,000

b. $4,100

c. $2,900

d. $4,400

Answer 1

The following table shows the due dates for payment and the days past due on October 31:

From the above we can observe that $2900 is the amount of customer accounts receivable between 31-60 days past due on October 31.

So the answer is Option C ($2900)