ANSWERS TO QUESTIONS

(a) Rosita Arenas Company Accounts Receivable Aging Schedule May 31, 2007 Proportion of Total Amount in Category Probability of Non-Collection Estimated Uncollectible Amount Not yet due .680 $1,088,000 .010 $10,880 Less than 30 days past due .150 240,000 .035 8,400 30 to 60 days past due .080 128,000 .050 6,400 61 to 120 days past due .050 ... ................
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