200 words ASAP
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
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.
Do you have an upcoming essay or assignment due?
If you are looking for a similar or different assignment contact us for help by placing an order anonymously and it will be delivered in time.Get Started & Get it within 6 Hours Order & Get it within 12 Hours
You can trust us for this and even for your future projects