Any time goods are sold or services are provided without an immediate payment in exchange, there is an account receivable created to record the amount due to the provider. While the intention is to collect 100% of these sales made on account, that isn’t always the reality. Companies have to be realistic in their collection expectations of their accounts receivable. Because of this, they often need to review and estimate their bad debt expense and their net realizable value of their accounts receivable, or in other words, what they really expect to collect of those accounts.
William Commerce, owner of Commerce Commercials, has some questions for you as the office manager of his company. For your initial post, draft a professional email to William Commerce to address the following questions:
Why do we as a company have to estimate and record anticipated uncollectible accounts? Can’t we just record the revenues earned when the cash comes in? Why would we even extend credit to customers who don’t pay their debts? What are these Generally Accepted Accounting Principles anyway, and which ones require this recording of revenues when earned and expenses when incurred, and the estimating of the bad debts?
Also, we don’t currently have a standard policy for credit management in our company. Please formulate a policy for granting, managing, and collection of accounts receivable for Commerce Commercials. This policy will go into the company handbook and on credit applications given to new customers seeking the option to make purchases on credit.
The post Mod 3 Discussion 200-300 words appeared first on ESSAY PAPER.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more