Central Manufacturing

Summary You have advised me that that you are concerned with bad losses. A superficial analysis of your accounts receivable indicated that a large portion were over 90 days past due. While you feel certain that these accounts will be collected eventually, the company has experienced problems in paying its bills. Analysis The bad debt losses are a result of the past due accounts receivable and can only be rectified once the underlying problem with the …

…the main contributing factor as there will always be overdue accounts. This will enable prompt and consistent follow up on the overdue accounts. Given the uncomplicated nature of the receivables, a pre-packaged software program would provide the tools necessary to assist the department in this goal. The accounting staff will need to be trained to use this program to ensure it meets the goal of improving the department's ability to control its accounts receivable lists.