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    Accounts Receivable (Credit) Management

    Discounts/Credit Terms

    On June 1, 2004, Noll Corp. sold merchandise with a list price of $30,000 to Linn on account. Noll allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Noll prepaid $600 of delivery costs for Linn as an accommodation. On June 12, 2004, Noll received from Linn a remitta

    Accounting: provision for uncollectible accounts receivable

    The year ended December 31, 2005, Ed Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/04 $51,000 Provision for uncollectible accounts during 2004 (2% on credit sales of $2,000,000) 40,000

    Credit to Corporate Customers

    When we all talk about the risk of extending credit to corporate customers, what is a quick and easy method of measuring the credit risk of a publicly traded firm?

    Accounts payable and credit terms for customers

    A company has been selling on a 3/10, net 30 basis. The company changes its credit terms to 2/20, net 90. The change will affect the customer's accounts payable and bank loan by: increasing payables and decreasing bank loans or increasing payables and increasing bank loans

    Change in the Accounts Receivable Balance After Reducing DSO

    Ruth Company currently has $1,000,000 in accounts receivable. Its days sales outstanding (DSO) is 50 days (based on a 365-day year). Assume a 365-day year. The company wants to reduce its DSO to the industry average of 32 days by pressuring more of its customers to pay their bills on time. The company's CFO estimates that if thi

    Risk of short term vs. long term credit

    From the standpoint of the borrower, is long-term or short-term credit riskier? Explain. Would it ever make sense to borrow on a short-term basis if short-term rates were above long-term rates?

    Debit/Credit Payroll

    In addition to regular payroll, ET Ice Cream Company hired a local construction company to assemble the structure and freezer paying them $26,000. What is the debit and credit for paying the construction company? How does ET report the construction cost payment to federal agencies?

    How is credit policy set in an organization?

    How is credit policy set in an organization? How would you set the credit policy? Why is monitoring accounts receivable important? How would you monitor the accounts receivable?

    Sample Design and Selection.

    Sample design Planning the confirmation of accounts receivable. There are 2,000 Customers with a total book value of $5,643,200. I am needing guidance with this problem I have been working on it since last week and it is due on Wednesday. See attached file for full problem description.

    Finance Questions

    1- What do you think happens to the ABL Line of Credit (i.e., the ABL Loan Balance) if you are using the arrangement to sell goods that consistently lose money? (i.e., the products have a negative contribution margin). 2- Asset-Based Lending Asset-based lending is usually provided by a bank or other financial institution t

    Inventory and accounts receivable planning

    Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of -month inventory should equal 3,000 units plus 30% of the next month's sales. On June 3o this requirement was met. Based on these data, how

    Discount Credit Terms - Effective Annual Rate

    Your company has been offered credit terms on its purchases of 3/15, net 30 days. If you do not take the discount and pay after 50 days what is your company's effective annual cost (EFF%) of not taking the discount? What would be the effective annual cost if your company paid after 30 days? (Assume a 360-day year)

    To go to a boss or not

    If you gave a report you thought was a great report to your boss a while ago and this report analyzes department productivity and tells several steps that you think that will improve employee output without increasing each workload. Brilliant you thought, but you have not heard anything from your manager, did you overstep your b

    Employee Benefits for Sr. Credit and Collections Analyst Memo

    Draft and post a memo to upper management detailing the benefits available to employees in the position of Restaurant General Manager/Operating Partner. 1. Be sure to include health insurance, time off, retirement/savings plan, and one other work/life benefit. 2. Explain to management the primary strategic consideration i

    Which accounts would be debited and credited based on the following data.

    Accounts given: (a) cash (b) accounts receivable (c) supplies (d)equipment (e) accounts payable (f) note payable (g) capital (h) withdrawals (i) service revenue (j)utilities expense (k) salary expense. transactions given: (A) purchased equipment for cash. (B) performed services for cash. (c) owner invests cash into b

    Finance Questions

    7. Explain why the bad debt percentage or any other similar credit-control percentage is not the ultimate measure of success in the management of accounts receivable. What is the key consideration? 8. What are three quantitative measures that can be applied to the collection policy of the firm? 9. What does the EOQ formu

    Complete Study Guide

    (See attached files for full problem description) Complete SE 5-SE 11 and E1-E13 SE1: Identify each of the following decisions as most directly related to (a) cash flow management, (b) profitability management, (c) choice of inventory system, or (d) control of merchandising operations. SE2: Using the following data, pr

    Accounting: Systems of merchandise

    (See attached file for full problem description) --- SE1: Identify each of the following decisions as most directly related to (a) cash flow management, (b) profitability management, (c) choice of inventory system, or (d) control of merchandising operations. 1. Determination of how to protect cash from theft or embezzleme

    Accounts Receivable for Smithe and Wreston Company

    The following is the sales budget for the Smithe and Wreston Company for the first quarter of 20X1. The aging of credit sales is: 30 percent collected in the month of sale 40 percent collected in the month after sale The accounts receivable balance at the end of the previous quarter is $36,000; $30,000 of that amount

    Is it worth the 1%?

    On the commercial side often we do see something similar in managing accounts receivable. One such standard policy or practice is termed 1/10Net30 - where the customer can take a 1% cash discount off of the invoice if paid within 10 days otherwise they pay the full amount within the normal 30 days. This provides an incentive t

    Terms of Trade Credit

    Which of the following terms of trade credit is the more expensive? a. A 3 percent cash discount if paid on the 15th day with bill due on the 45th day (3/15, net 45) b. A 2 percent cash discount if paid on the 10th day with bill due on the 30th day (2/10, net 30) Please illustrate results. Thank you.

    Financial management

    I would like assistance with answering the following question thank you. Using the following information, compute the Days in Accounts Receivable amounts for the end of each quarter: Accounts Re

    Collecting Receivables in Healthcare organizations

    Healthcare financial managers have searched for ways to collect receivables faster since credit transactions began. Some of the techniques briefly described in McLean for speeding the conversion of patient accounts into cash are the lock box system, selling patient accounts to 3rd parties, hiring collection agencies, and securi

    Discussion

    Nancy Tai has recently opened a revolving charge account with MasterCard. Her credit limit is $1000, but she has not charged that much since opening the account. Nancy hasn't had the time to review her monthly statements as promptly as she should, but over the upcoming weekend, she plans to catch up on her work. In reviewing

    Credit Policy Review

    The president, vice president, and sales manager of Moorer Corporation were discussing the company's present credit policy. The sales manager suggested that potential sales were being lost to competitors because of Moorer Corporation's tight restrictions on granting credit to consumers. He stated that if credit policies were loo

    Net credit position

    Sampson Orange Juice Company normally takes 20 days to pay for its average daily credit purchases of $6,000. Its average daily sales are $7,000, and it collects accounts in 28 days. a. What is its net credit position? b. If the firm extends its average payment period from 20 days to 35 days (and all else remains the same

    Trade Credit Rates

    Trade Credit Rates. A firm currently offers terms of sale of 3/20, net 40. What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount? State whether the implicit interest rate will increase or decrease. a) The terms are changed to 4/20, net 40. b) The terms a