Commercial Supply Corp.bills its accounts on terms of 2/10 net 30.The firm's accounts receivable include $200,000 that has been outstanding for ten or fewer days,$126,000 outstanding for 11 to 30 days,$98,000 outstanding for 31 to 40 days,$12,000 outstanding for 41 to 50 days,$20,000 outstanding for 51 to 60 days,and $7000 outstanding for more than 60 days.Is the aging schedule for Commercial Supply Corp.bottom heavy?

Question

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The aging schedule is not considered bottom heavy because 70% of the outstanding sales are on time ($200,000 + $126,000 out of a total of $464,000), and the percentage of long-term outstanding payments is relatively low, indicating that most payments are being made within the terms or shortly thereafter.