Managing Accounts Receivable is also known as Credit Management or Credit Control.
In an organization, credit sales form large portion of the sales re: about 15% to 25% of a firm’s assets. To increase sales, top management will resort to increasing/extending the credit period to the customers.
Append below showed how we compute the viability when a firm relax or extend its credit period to boost its sales.
- Details Of Ninth Schedule Companies Act 1965(Act No 125)
- Basic Understanding Of Cost Of Capital/Weighted Average Cost Of Capital
- Working Capital Management:Extending Credit Terms To Increase Sales
- Accounting Treatment For The Increase Or (Decrease) Of Provision For Doubtful Debts
- Explain what is the Chart Of Accounts and give examples of a simple and complex chart of accounts