A Breakdown of Teffan, Inc -An Evaluation of the Firm's Collection Efforts Based on the 30

Multiple Choice

A breakdown of Teffan, Inc.'s outstanding accounts receivable dated June 30, 2003 follows, on the basis of the month in which the credit sale was initially made. The firm extends 30-day credit terms.
$\begin{array}{lr}\text { Month of }&\text { Accounts }\\\text { Credit Sale }&\text { Receivable }\\\hline\text { June, 2003 } & \$ 410,000 \\\text { May, 2003 } & 340,000 \\\text { April, 2003 } & 270,000 \\\text { March, 2003 } & 200,000 \\\text { February, 2003 or before } & 100,000\\\text { Total }&\$1,320,000\end{array}$
-An evaluation of the firm's collection efforts based on the aging schedule would suggest (See Figure14.5)

A) superior credit management.
B) poor credit management.
C) overzealous collection efforts.
D) satisfactory credit management.