A Vibrant Banking System

Any accounts over 90 days will be turned over to our collection agency, and will not be able to schedule an appointment with our office.

Short-term borrowing means a loan take out by a person and this loan will be paid back within a short amount of time with a very high interest rate. These types of loans include pay-day loans. They are quick and paid back within a month or weeks.

Fallow - The farmer leaves part of his land fallow for two months each year to prevent soil degradation.

our Farming season are short because of the soil in many places was rocky, Most of our farmers practiced subsistence farming, that is, they produced just enough food for themselves and sometimes a little extra to trade in town.

Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to as trade receivables in Alcatel's financial statements.

(TCO D) Which of the following accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?

These statements shall be submitted to Client at the address set forth in Section 6 below. Client shall promptly review and pay each such invoice. Invoices that remain unpaid after 30 days are subject to service charges. Attorney reserves the right to suspend further work for Client if invoices are not promptly

The days sales outstanding (DSO) measures the average number of days it takes a company to collect on its debts after a sale is made.

Long-term liabilities: Note Payable with total balance due in 5 years and Mortgage Loan with payments made monthly over 5 years.

actual accounts, which can be considered as uncollectible, i.e. those that are already over 90 days. The balance

This means that under the company’s current policy, revenue is recognized too early, before delivery, while actual payment is not received until 30 days after customer acceptance or until the 90-day warranty period has ended. Furthermore, the 90 day warranty provision creates an uncertainty in the collectibility of sales proceeds.

Growing and harvesting crops requires many tasks. Before the crop is planted, preparing the soil with disking, tilling (vertical or horizontal), and fertilizing is sometimes required depending on the conservation method used. Shorty after, it is time for the planting or drilling of the crop. During the middle of the growing season, irrigating is in full swing to make the crops grow. Also, floaters and airplanes are fighting the battle with weeds and pests. This time of the year is also slower for farmers then planting or harvesting time. As fall arrives, irrigating comes to a halt and the busy harvesting season begins. Combines, tractors and grain carts, and semi trucks fill the countryside as the race to get the crops out of the field begins. If the weather permits harvest can last as short as a couple of weeks for the smaller farms and longer then a month or two for the larger farms. During late fall and into the winter selling grain and buying seed, equipment, and fertilizer is the task at large. As you can see farmers does not get very much free time. Most of the time this occupation requires long hours, from sun up to sun set. This limits time for trips and extra curricular activities.

Allow a 30-day grace period on all accounts receivable overdue at the end of the year. As these accounts will no longer be overdue, the company will not need an allowance for overdue accounts.

In section 5, the author hypothesizes that the accounts receivable accruals map into the cash flow realizations to a lesser extent than those under SOP 91-1. The author points out that the earlier the recognition, the more likely the customer is to not pay. Circumstances such as acceptance, commitment to pay and/or needs for customization may change prior to or upon delivery of the software or rendering of the service that may not be foreseen at the time of contract signing or earlier than as specified in SOP 91-1.

Netessine, S., & Shumsky, R. (2002). Introduction to the theory and practice of yield management. INFORMS Transactions on Education, 3(1), 34–39. 
Retrieved from http://archive.ite.journal.informs.org/Vol3No1/NetessineShumsky/