United Worldwide’s accounts receivable totaled $1.75 million on August 31, 2009. A breakdown of these outstanding accounts on the basis of the month in which the credit sale was initially made...

United Worldwide’s accounts receivable totaled $1.75 million on August 31, 2009. A breakdown of these outstanding accounts on the basis of the month in which the credit sale was initially made follows. The fi rm extends net 30, EOM credit terms to its credit customers. Month of Credit Sale Accounts Receivable August 2009 $ 640,000 July 2009 500,000 June 2009 164,000 May 2009 390,000 April 2009 or before 56,000 Total (August 31, 2009) $1,750,000 a. Prepare an aging schedule for United Worldwide’s August 31, 2009, accounts receivable balance. b. Using your fi ndings in part (a), evaluate the fi rm’s credit and collection activities. c. What are some probable causes of the situation discussed in part (b)?