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2. For the pln'pose of expanding into other geographic areas, BNT hired a marketing consultant to develop a plan for increasing awareness of its products.

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2. For the pln'pose of expanding into other geographic areas, BNT hired a marketing consultant to develop a plan for increasing awareness of its products. BNT paid the consultant a at fee of $3, for a plan covering Ell-[)3 to iii-D5. BNT began implementing the plan in Ell-D3, and it appears to be working well. 3. Customers order computers 'om BNT by phone or over the Internet. BNT does not begin building the computer until the order is placed. |l'Cl'nce it is built, the computer is shipped to the customer. The customer then has 3H days to pay. Mr. Kishman has always recorded the revenue on receipt of cash from the customer. He has always found this easier because approximately 4% of the customers never pay. 4. To accommodate the expansion, ENT had to heavily upgrade the computer hardware in its head office. The list price of the equipment purchased was $5,, but Mr. Kishman was able to negotiate a price of $49,. Taxes added $T, to the price, and delivery costs were $20,000. Installation of all the equipment cost $S,, but after it was installed, Mr. Kislnnan realized that he had not planned the installation very well, and an additional $26,t} was spent to have the installation redone 5. The expansion went well right from the beginning, and EMT made significant sales in several new markets. It has recorded all of the revenue related to these sales. The collection of these amounts {it made all the sales on credit} has been very slow. BNT has yet to book any bad debt expense because it is brand new in the markets and does not have a basis on which to make the estimate. Required: Prepare a report and recommendations for Mr. Kishman. Source: Richardson. Cases in FinneoMIAcoounng 2903', adopted

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