Providing credit facilities to customers can lead to problems.

A tool to control problems of providing credit facilities to customers is aging of receivables.

What are the costs of offering credit facilities to customers?

Which is the correct double entry for the write-off of an irrecoverable debt?

Which of the following items would be considered for writing off as an irrecoverable debt?

Credit facilities allow businesses to keep trading without having to provide cash “up front”.

Lily entered a sales invoice for $300 onto her computerised accounting system for goods sold on credit in September. How would this impact the trial balance in September assuming no receipt for these goods has been received?

NOT advantages of using coding system :

A cash sale will be shown in the receivables ledger.

What is a sales account used for in the accounting records? 

Which of the following would NOT be recorded in the trade receivables general ledger account? 

What would writing off an irrecoverable debt result in?

Which of the following reasons would a business have for maintaining and aged analysis of its receivables?

The balance on the trade receivables general ledger account will always agree to the sum of the balances on the individual receivables ledger.

A company uses the following coding sytem.

4          Screw

4 1       Flat head screw

4 2       Pin head screw

4 1 1    Steel flat head screw

Which type of coding system is this?

Pair with the correct type of code

Which of the following statement best describes ‘BLOCK CODES’