Elements of the entity’s accounts receivable subsystem
Bella Boutique is a business in Wellington that is managed by Tony. Bella Boutique earns half of its income by selling clothes and accessories on credit.
Bella Boutique offers credit, but not to all customers, as the potential credit customer has to fill out a credit application form. The credit application form states the person’s name, date of birth which is the most important as it helps to verify the correct customer, employment and place of residence amongst other things. Bella Boutique manager Tony has the job of approving the credit applications, to help Tony decide if the potential customer has sufficient funds to pay their debt off to Bella Boutique. He can check the potential customer’s previous and/or
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They also sign to say they accept any additional charges from Bay Corp if they are behind in their payments and Tony needs Bay Corp to chase them up.
When customers apply for credit accounts some say they can pay a certain amount per week. This number can be used to decide the customer’s limit. The customer may want to set themselves a limit or they may not have had any previous credit accounts and are young, which means that Tony will set a credit limit for them of $100 until he believes that the customer is reliable with payments. To decide a customer’s credit limit, if the customer says that they can pay a certain amount per week that number is multiplied by four to get the amount they can pay per month. For example, M Claire has a credit limit of $2000. Credit limits are important as they stop the customer buying more than they can pay off. Credit limits at Bella Boutique are strictly enforced as most people set them themselves and don’t want to spend more money than they can afford to pay off. This ensures that customers will be able to pay Bella Boutique the amounts owing.
An example of this from the Accounts Receivable Subsidiary Ledgers is when B.
For the Italian Centre Shop their hours consist of 9 a.m. to 9 p.m. seven days a week, and closed on Major holidays throughout the year (Spinelli, 2016). These hours compare to other grocery stores as they stay open 24/7. The hours of 9 a.m. to 9 p.m. prevent individuals to finish their grocery shopping as they tend to work later hours. Usually, a grocery store would open earlier as well, so this averts consumers from going earlier in the day to pick up the needed necessities. Another weakness, that is looked upon to be difficult of the Italian Centre Shops’ consumers, is the parking. Especially for branch located in North Edmonton, this is seen to be problematic as there is an abundance of traffic which can be extremely hard to navigate
Their purchase habits can also help to give the company a better understanding of the
What Dave recommends is paying the minimum balance on all your credit, except for the smallest balance. On that balance, put as much as your monthly budget will allow. In addition, if you get extra money coming in for the month, put it on the smallest balance also.
more than 30 days overdue. Mesa has a credit balance of $45 in the allowance for doubtful accounts.
According to American Express the higher prices are used to pay for client incentive After losing the court case the company has vowed to continued its fight to have the
The company that I chose to research for my company profile paper is on the clothing store Francesca’s. Francesca’s is a boutique like store that contains different women’s fashion trends that range from clothing, jewelry, and shoes. Francesca’s also offers specialty items and gifts that include candles, wall art, and gag gifts (Coltrin, 2010). The reason I chose Francesca’s for this project is because this store interests me. I first started shopping at this store when I was about sixteen years old. The store quickly became very popular for my friends and I as the store offered something that we had never seen before; boutique items for reasonable prices. Francesca’s is becoming increasingly popular among women of all ages that are looking for fashionable one-of-a-kind items without breaking the bank.
In the Spring of 1949, Alfred Bloomingdale, Frank McNamara, and Ralph Snyder came up with a new plan for a modern type of credit card. While out to lunch one day in New York, the President of the New York Credit Card Company Frank McNamara had forgotten his wallet at home (Evans 53) . He had a thriving business yet credit cards at the time were only given to selected people. The first modern credit cards was introduced by Diners Club Inc. because of this. The modern day credit card is a small, plastic, rectangle, more than three inches. There is an account number and a name that is embroidered on the front. The first credit card did not look much like what credit cards look today. They were made out of paper not plastic, and they weren’t cards they were a lot like a tiny booklet that had all the same information the modern day credit card has now(Weiss 38). The modern day credit card can carry up to a $200 line of credit meaning you can buy anything you want at that certain time and pay it back at a later date such as months or a year after that time. Some companies require you to pay the full amount of your charge on the card at once, but some allow you to pay in small amounts. In order to apply for a credit card you must be at least eighteen years of age and if you are not you must have an adult sign the paperwork to apply for one. Prior ...
High credit limit: Set aside a part of your credit limit for online spends, per statement cycle, within the available limit on your primary
Credit card companies blame consumers for being too gullible and forthcoming with their private information for many reasons (Shelly, 2010). Out of the six most common ways, that identit...
Assign special key account managers for large customers. Introduce discounting policy and customer loyalty programs.
The company policy on credit is that agents and direct clients are strictly on cash and carry while the selected clients have 30 day period to pay their debts.
Cash- Mr. Price encourages customers to pay with cash an and contribute to cash flow
Credit companies and banks make it very easy for families to spend money they do not have. For instance, credit cards are commonly accepted in stores, restaurants, and many other establishments. Parents sometimes feel that they need to buy their children everything they want, regardless if the money is not in their wallets. They also live such busy lives, making it hard to cook a meal at home. Parents find it more convenient to go through a drive-thru or to dine out instead because it saves time. On the other hand, they are spending extra money they do not have. Families also like to go on vacations that they cannot afford. Charge vacation trips it all on credit cards. Meanwhile, only able to make the minimum payments on them. They probably do not consider the interest rates that these credit cards have. Another situation is when one of the parents decide to buy a car without having a down payment. Financing cars paying loans with massive interest rates. Sometimes this occurs when they see someone they know buy a brand new car, so they think that they need one too. This is known as competing with the Joneses. Many parents and children want what everyone else around them has. However, the parents may believe they can afford it, but in reality all the overspending adds up an...
details of the guest's data such as name, age, nationality, etc are noted down during registration,
amount, in percentages, which is paid at regular intervals until some future specified time ( the