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ACC - Have you addressed any collection problems?




Question;a) Have you addressed any collection problems? We did a reasonableness test and found that your allowance account is between just 10 and 11 percent of your open accounts. Is there some reason this ratio has decreased so much?We reviewed the bad debt situation with your assistant, Pam Mason. We wrote off some uncollectible amounts and increased the allowance over last year. We figure that write-off got rid of our slowest paying customers. I guess I did not really look at the percentages since we have merchandising accounts in with our maintenance accounts now. All of our merchandising accounts seem to pay on time.b) Do you have any inventory in transit? Pam Mason has gone through all of your year end sales invoices, but we still need your accounts payable invoices to verify that your year end cut-off for inventory purchases is correct.


Paper#41076 | Written in 18-Jul-2015

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