Question

Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due:

Account Due Date Amount

Avalanche Auto August 18 $12,000

Bales Auto October 9 2,400

Derby Auto Repair June 15 3,900

Lucky's Auto Repair September 10 6,600

Pit Stop Auto September 22 1,100

Reliable Auto Repair July 2 9,750

Trident Auto August 21 1,800

Valley Repair & Tow May 24 4,000

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Determine the number of days each account is past due as of October 31. Round your answers to the nearest whole number.

Account Due Date Number of Days Past Due

Avalanche Auto August 18

Bales Auto October 9

Derby Auto Repair June 15

Lucky's Auto Repair September 10

Pit Stop Auto September 22

Reliable Auto Repair July 2

Trident Auto August 21

Valley Repair & Tow May 24

Answer 1

Solution ;

Account	Due date	Number of days past due	Explanation
Avalanche Auto	August 18	74 days	August (31 days - 18) = 13 days September = 30 days October = 31 days (13 + 30 + 31)
Bales Auto	October 9	22 days	October (31 days - 9 days) = 22
Derby Auto repair	June 15	138 days	June = (30 days-15days)=15 days July = 31 days August = 31 days September = 30 days october = 31 days (15 + 31 + 31 + 30 + 31)
Lucky's Auto Repair	September 10	51 days	September (30 days- 10 days)=20 October = 31 days (20 + 31)
Pit stop Auto	September 22	39 days	September (30 days - 22 days)=8 October = 31 days (8 + 31)
Reliable Auto Repair	July 2	121 days	July (31 days - 2 days)= 29 days August = 31 days September = 30 days October = 31 days (29 + 31 + 30 + 31)
Trident Auto Repair	August 21	71 days	August (31 days-21 days)=10days September = 30 days October = 31 days (10 + 30 + 31)
Valley Repair & Tow	May 24	160 days	May (31 days-24 days) = 7 days June = 30 days July = 31 days August = 31 days September = 30 days October = 31 days (7 + 30 + 31 + 31 + 30 + 31)