Discussion Post for Accounting class

This module discusses discounts given out to customers based on payment terms, such as 2/10, n/30. : What would the credit terms 3/15, n/45 stand for? Explain why it is important for a company to keep track of how much money in discounts is given out? What account is used to track discounts? From a business owner's point of view, what are the advantages of allowing discounts? From a business owner's point of view, what are the disadvantages of allowing discounts?

Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence.   A. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company’s    .   Consider the case of Sombra Corp.: Sombra Corp.’s CFO has decided to take a closer look at the company’s credit policy. Sombra Corp. has annual sales of $384.4 million, and it currently has an accounts receivable balance of $45.9 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO).   B. Based on this information, Sombra Corp.’s DSO is    . (Note: Use 365 days as the length of a year in all calculations.)   C. The average DSO for Sombra Corp.’s…

Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company's collection policy Consider the case of Mammoth Pictures Inc.: Mammoth Pictures Inc.'s CFO has decided to take a closer look at the company's credit policy. Mammoth Pictures Inc. has annual sales of $396.3 million, and it currently has an accounts receivable balance of $47.6 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Based on this information, Mammoth Pictures Inc.'s DSO is The average DSO for Mammoth Pictures Inc.'s industry is 51.2 days. Assuming that its sales…

Which 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

Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company’s   (______)  .   Consider the case of Newtown Co.: Newtown Co.’s CFO has decided to take a closer look at the company’s credit policy. Newtown Co. has annual sales of $402.8 million, and it currently has an accounts receivable balance of $47.6 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO).   Based on this information, Newtown Co.’s DSO is  (_____)  . (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Round your answer to one…

Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company’s    .   Consider the case of Three Waters Co.: Three Waters Co.’s CFO has decided to take a closer look at the company’s credit policy. Three Waters Co. has annual sales of $384.4 million, and it currently has an accounts receivable balance of $45.4 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO).   Based on this information, Three Waters Co.’s DSO is    . (Note: Use 365 days as the length of a year in all calculations.)   The average DSO for Three…

Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's credit standards Consider the case of Sombra Corp.: Sombra Corp. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Sombra Corp. sells to its customers on credit terms of 1/10, net 30. If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Sombra Corp. get from the customer? $90,000 O $105,000 $82,500 $99,000 If the customer paid off the account after 15 days, Sombra Corp. would receive Approximately 35% of Sombra Corp.'s customers take advantage of…

Why do you think businesses extend credit to customers thereby creating accounts receivable?

how can using a mix of Accounts Receivable, Notes Receivable and accepting Credit Cards can benefit your business

Question: 1. what is the correct source documents for credit sales by business X. option: a) invoice issued by business X. b) Receipts issued by business X. c) Bank credit advice. d) internal memo. e) cash sales slip. f) Cheque butt. g) credit note issued by business X. reqiured: please answer this question by choosing the right source document.

As a company accounts payable​ manager, which of the following credit terms are most likely to entice you to take the cash​ discount? A. ​2/10 net 90 B. ​1/10 net 45 C. ​2/10 net 60 D. ​1/10 net 30

Morgan had net sales of $1,041,105 and average accounts receivable of $157,000. Its competitor, Stanley, had net sales of $1,090,600 and average accounts receivable of $142,100. (a) Calculate the accounts receivable turnover for both companies. (b) Which company is doing a better job of managing its accounts receivables? Complete this question by entering your answers in the tabs below. Required A Required B Compute accounts receivable turnover for both companies. Morgan Stanley Choose Numerator: 1 1 1 Accounts Receivable Turnover Choose Denominator: = = Accounts Receivable Turnover Accounts receivable turnover times times

7) When recording a customer credit card payment on account using QuickBooks, select:A) Create Invoice > Customer Payment > Customer & Job NameB) Create Sales Receipt > Record DepositsC) Receive Payment > Select Customer & Job Name > Select Payment Method and enter credit card informationD) Make Deposit > Select Customer & Job Name > Select Payment Method and enter credit card information Group of answer choices A B C D

Required information [The following information applies to the questions displayed below.] Required: 1. Create a calculated field to calculate the Days Past Due for each invoice. 2. Summarize the accounts receivable by customer. 3. Get the detailed receivables for the customer "Taste of Thai". Ask the Question: How can we use Tableau on the total detailed late accounts receivables balance to get specific detail on invoices due by customer? Master the Data: To begin, we have a list of 200 receivables that are all past their due date as of today's date of 12/31/2021. This is shown in the Excel file Lab 2-2 Data.xlsx, which will be imported into Tableau. Software needed ⚫ Tableau • Screen capture tool (Windows: Snipping Tool; Mac: Cmd+Shift+4) Data: Excel File Lab 2-2 Alt Data.xlsx. Perform the Analysis: Refer to Lab 2-2 Alternative in the text for instructions and Lab 2-2 steps for each of the lab parts. Share the Story: Required: 1. What is the grand total amount owed in past due…

When a company makes a sale and accepts a credit card payment from a customer, the company: Multiple Choice debits Cash. credits Accounts Receivable. credits Cash. debits Accounts Receivable. < Prev 29 of 50 Next T:T

Consumers should comparison shop for credit just as they would for any other consumer good or service. How might a​ consumer's stage of the financial life​ cycle, income, net​ worth, or credit score affect the availability of loan sources and the associated cost of the loans​ offered?       Question content area bottom Part 1 Which of the following statements is​ correct?  ​(Select best answer​ below.)     A. ​Typically, stages of the financial life​ cycle, income, net worth and your credit score move in​ unison, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources.   B. ​Typically, stages of the financial life​ cycle, income, and net worth move inversely with credit​ score, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources.   C. ​Typically, stages of the financial life​ cycle, income, net worth and your credit score move…

Answer these MCQ's below.

Notes Receivables & Accounts Receivables How are accounts receivables like notes receivables, in that notes receivables can be sold to other parties and are used to extend credit to customers? Please explain.

What notice given to the customer explains that we may report ingormation to the credit bureaus

Which of the following can have a VERY high amount of accounts receivable & long receivables collection period? O Bank O Retail B2B (Business to business) Retail B2C (Business to customer) O Utility company

Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted credit is indicated by the company’s    .   Consider the case of Universal Exports Inc.: Universal Exports Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Universal Exports Inc. sells to its customers on credit terms of 1/10, net 30.   If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Universal Exports Inc. get from the customer? $157,500   $148,500   $120,000   $127,500     If the customer paid off the account after 15 days, Universal…

Consumers should comparison shop for credit just as they would for any other consumer good or service. How might a​ consumer's stage of the financial life​ cycle, income, net​ worth, or credit score affect the availability of loan sources and the associated cost of the loans​ offered?         Question content area bottom Part 1 Which of the following statements is​ correct?  ​(Select best answer​ below.)     A. ​Typically, stages of the financial life​ cycle, income, and net worth move inversely with credit​ score, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources.   B. ​Typically, stages of the financial life​ cycle, income, net worth and your credit score move in​ unison, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources.   C. ​Typically, stages of the financial life​ cycle, income, net worth and your credit score…

The credit bureau score model of credit scoring examines: Group of answer choices D. In-house data collected A. Credit card data collected from several banks B. Applicant profile C. FICO scores