Metal Crafters is a local Halton business that provides custom metal products for individuals as well as business customers who generally place orders anywhere between $500 and $1,000,000. The products that Metal Crafters produce can be large metal frame components for large projects including buildings, hospitals, bridges and have even produced products for airport terminal and hangar renovations in numerous countries. It will also produce small items for individuals such as housewares. While the business produces large products and sales orders are large, the organization is not a major competitor in the industry and would like to expand. There are currently liquidity issues with many consumers around the world due to the Covid-19 pandemic and many of these are now becoming solvency issues. The organization relies on its sales team to develop its business through customers sourced from around the world. Many bonus plans are based upon the attainment of some specified short-term goal. For example, sales personnel at Metal Crafters are given a bonus of 5% of the amount by which their sales exceed $100,000. Sometimes the attainment of these goals is achieved by methods detrimental to the long-term needs of the organization. Sales representative Lisa Eddu, for example, finds herself tempted to court certain customers that place large orders, even though she knows they may not be able to pay. She complains that the bonus system itself encourages this. It has resulted in recent years Metal Crafters not collecting a significant amount of its receivables. The owners of Metal Crafters have asked you, its accountant, to provide a summary of its curent receivables (see table below, Application Marks). Your work has produced the aged receivable schedule below (Table 1). Currently, Metal Crafters does not accept credit cards and does not charge interest on receivables and uses the direct write-off method to record any bad debt expense. The owners wish to know the difference between Accounts Receivable, Notes Receivable and accepting Credit Cards and pros and cons of each. They wish to know how using a mix of this could help reduce the potential of its uncollectible accounts. Currently, Metal Crafters Days Sales In A/R is 62 days. The industry average last year was 33 days for organizations in similar industries with comparable sales. Note: the owner of Metal Crafters loves images when a concept is explained. Table 1 Amount Outstanding uncollectable %age Age of Receivables Current Accounts 0-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due $3,000,000.00 1.00% 400,000.00 3.00% 350,000.00 6.009%6 85,000.00 12.00% 380,000.00 30.00%