Pomico Inc. has $350,000 of receivables on its books as of July 31ˢᵗ, 20% over the month's budget. To assist in determining whether this is due to an increase in credit sales in the month, one or two larger accounts lagging in payment, or a problem with all collections, what should the manager do?

Question

Quizplus · Accepted Answer

Producing an aging schedule of receivables will show how long each customer's payment is overdue, which will help determine if there are one or two larger accounts that are lagging in payment or if there is a problem with all collections. The other options may provide useful information, but they do not directly address the specific issue at hand.