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Collection procedures the following steps are taken

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Collection ProceduresThe following steps are taken regarding the collection of monies owing:0-30 days current:Invoice/s sent to customer with month end statement31-60 days overdue account:Overdue sticker sent with next statement61-90 days overdue account:Phone call informing customer credit facility will be put on hold91 + days overdue account:If a customer’s debt is more than $150 a letter informing the customer theiraccount will be turned over to a collection agency if payment is not receivedwithin 14 days.Customer DelinquencyA debt that is 90 + days overdue and less than $150 will be written off as a bad debt.Tip: the specific answers to all of the following questions for 9(f) may not be completely found in the textbook.Use your learning and understanding of recording and administering credit sales and dealing with creditcustomers to arrive at your answers. Feel free to research other sources to assist you.FNS40217 Module 1.1 Assignment_1811Page31of64
Units Covered: FNSACC311, FNSACC312, BSBFIA401Required:9f(i)Using the information provided in Peters Plants Aged Receivable report as at 31 March 2018, complete anOverdue Accounts Review.Aged Receivables (Detail)31 March 2018Customer/Invoice No.DateTotal Due0 - 3031 - 6061 - 9091 +Rosie Rose0001238/1/2018$1200.00$1200.00Total$1200.00$0.00$0.00$1200.00$0.00Cam Camelia00034518/2/2018$670.00$670.00Total$670.00$0.00$670.00$0.00$0.00Leonard Lilly0005675/12/2017$400.00$400.00Total$400.00$0.00$0.00$0.00$400.00Grand TotalAgeing Percent$2270.00$0.000.0%$670.0029.5%$1200.0052.9%$400.0017.6%Overdue Accounts Review – Peters PlantsCustomerInvoice NumberDays OverdueAmount OwingPrevious CommunicationsRosie Rose00012382 days$1,20028/2 - Overdue sticker sent withFebruary statement.31/1 - Invoice sent with Januarystatement.Cam Camelia00034541 days$67028/2 - Invoice sent with Februarystatement.Leonard Lilly000567116 days$40028/2 – Phoned the customer toinform that their credit facility will beput on hold.31/1 – Overdue sticker sent withJanuary statement.31/12 – Invoice sent with Decemberstatement.FNS40217 Module 1.1 Assignment_1811Page32of64
Units Covered: FNSACC311, FNSACC312, BSBFIA4019f(ii)Using the information from Peters Plants’ Credit Policy and Aged Receivables report as at 31 March 2018,what steps would you take regarding the collection of monies outstanding as at 31 March 2018?
FNS40217 Module 1.1 Assignment_1811Page33of64
Units Covered: FNSACC311, FNSACC312, BSBFIA4019f(iii)Who would you distribute these reports to?

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Term
Three
Professor
N/A
Tags
invoice, CASH RECEIPTS JOURNAL

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