AC 341 chapter 8 hw

AC 341 chapter 8 hw - Stephen Hruby Ch 8 DQ 17, BE 43,45 PR...

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Stephen Hruby Ch 8 DQ 17, BE 43,45 PR 55 Case 62 B, 66 DQ 17.It is important to establish and monitor credit limits for customers because credit limits take into account the basis of payment history and the current amount of uncollected sales outstanding. You would not want to allow an extremely large credit sale to a new customer whose creditworthiness you have not evaluated. If a company has been purchasing from you for many years and has always paid on time, you probably will extend their credit limit if they are making a large purchase. Uncollectible receivables lead to bad debt expense, which all companies try to limit. BE 43. A) If a sale order received caused a customer to exceed his credit limit, a credit manager would usually notify the customer that the order cannot be accepted. However, management cold also allow for the customer to exceed his limit in special situations (might even decide to raise the credit limit after running a credit check and seeing the customer has always paid on time). B) After the shipping department verifies that the quantities and descriptions of goods prepared for shipment are consistent with the sales order, shipping documents are prepared, the bill of lading is prepared, and the order is shipped to the customer. The
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AC 341 chapter 8 hw - Stephen Hruby Ch 8 DQ 17, BE 43,45 PR...

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