A funeral home has $80,000 in accounts receivable, with $40,000 current. What percentage of the accounts receivable is past due?

To determine the percentage of accounts receivable that is past due, it's essential to first identify the total accounts receivable and separate it into current and past due amounts. In this case, the funeral home has total accounts receivable of $80,000, with $40,000 classified as current. This means that the remaining accounts receivable that are past due would be calculated by subtracting the current amount from the total amount.

Here, the past due amount is:

Total Accounts Receivable - Current Accounts Receivable = $80,000 - $40,000 = $40,000.

Now, to find the percentage of the total accounts receivable that is past due, the following formula is used:

(Past Due Amount / Total Accounts Receivable) × 100.

Substituting in the values gives:

($40,000 / $80,000) × 100 = 50%.

Thus, 50% of the accounts receivable is past due. This calculation is critical for understanding cash flow and the financial health of the funeral home, highlighting the importance of monitoring accounts receivable to manage collections effectively.