Case Study
• Q1: What advice would you give Jones regarding the selection of new credit customers?
Selecting a new credit customers is:
1.) Select customer trust.
2.) Seller should also be informed about the name, address or trade. The bank's customers who use contact.
3.) The ability to repay debt.
4.) Require collateral for a loan.
• Q2: Jones has considered giving up credit sales. What are the possible influences of this
decision (any disadvantages) to his business?
Influence the possibility of this is :
1.) Lower money in circulation.
2.) Risk of the receivables become bad debt, John need to provision for doubtful accounts.
3.) Investments with less.
4.) Not receiving payments from debtors.
• Q3: What is the influence of John’s decision on the credit customers ( borrowers )
influence of John’s decision on the credit customers is:
1.) Facilitates increased sales volume.
2.) Brings a closer association with customers.
3.) Provides working capital.