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Why should credit professionals review the existing accounts at least once a year?
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Solved in 2 steps
- If a credit sale is made to a New customer, and the amount due is received before the year ends, explain the bookkeeping work that is required for that sales amount to eventually be included in the final accounts. Give an example of the bookkeeping entries to be made.Janet works in the credit department handling accounts receivable transactions. At the end of each period, the allowance for uncollectible accounts has a larger and larger debit balance. What may be going wrong here? What possible corrections should be made?What notice given to the customer explains that we may report ingormation to the credit bureaus
- What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a grace period.?Can you allow credit period for an unknown customer based on the report of a credit rating agency?Explain how a credit card billing cycle works. What is a grace period, and when is the best time to make payments in your billing cycle?
- Which of the following is not one of the three primary credit bureaus? Group of answer choices A. the amount of credit used each month. B. credit utilization. C. credit inquiries. D. credit payment history.Examine the summary section of a monthly credit card statement above and find the New Balance. (Disregard the minimum paymentWhich one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of time
- A pre-approved amount of open-end credit, based on a borrower's ability to pay, is called a(n) _____. revolving creditfinance charge average daily balanceline of creditQuestion The average collection period is the average amount of time that elapses from a credit sale until the company can use the payment (collection) of the sale. True or false?Why do we need to check the credit worthiness of credit customers before granting their credit application?
