Chapter 6

The Management of Accounts Receivable

This chapter discusses accounts receivable management and includes a financial analysis worksheet and suggestions on establishing credit policies. This chapter also contains information regarding obtaining a security interest and guarantees, accepting P-cards from customers, and officer notes receivables. A discussion of the differences between generally accepted accounting principles (GAAP) and Internal Revenue Service (IRS) regulations regarding accounting for bad debts concludes this chapter.

The Establishment of an Effective Credit Policy

To attract new customers and increase sales volume, a company generally must extend trade credit. Although sales may increase, a potential exists for increased ...

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