4(1). Peters Plants sells artificial plants for indoor and outdoor use. The company is owned and managed by Peter Petersen. Credit Policy Terms and conditions - Standard credit terms are net 30 days. At the end of the month an aged receivables report and overdue accounts are reviewed. Monthly statements are issued at the end of the month. Collection Procedures The following steps are taken regarding the collection of monies owing: 0-30 days current: Invoice/s sent to customer with month end statement 31-60 days overdue account: Overdue sticker sent with next statement 61-90 days overdue account: Phone call informing customer credit facility will be put on hold 91 + days overdue account: If a customer's debt is more than $150 a letter informing the customer their account will be turned over to a collection agency if payment is not received within 14 days. Customer Delinquency A debt that is 90 + days overdue and less than $150 will be written off as a bad debt. Tip: the specific answers to all of the following questions for 4(f) may not be completely found in the textbook. Use your learning and understanding of recording and administering credit sales and dealing with credit customers to arrive at your answers. Feel free to research other sources to assist you. Required: 4f(i). Using the information provided in Peters Plants Aged Receivable report as at 31 March 2018, complete an Overdue Accounts Review. Aged Receivables (Detail) 31 March 2018 Date Total Due 0-30 31-60 61 - 90 91 + Customer/ Invoice No. 8/1/2018 $1200.00 $1200.00 Rosie Rose 000123 Total $1200.00 $0.00 $0.00 $1200.00 $0.00 18/2/2018 S670.00 $670.00 Cam Camelia 000345 Total S670.00 $0.00 $670.00 S0.00 $0.00 5/12/2017 S400.00 $400.00 Leonard Lilly 000567 Total S400.00 $0.00 $0.00 S0.00 $400.00 $2270.00 $0.00 Grand Total Ageing Percent $670.00 29.5% $1200.00 52.9% $400.00 17.6% 0.0% 4g(i) In order to pay the invoices that have been received from your suppliers, what checks would you first undertake on these supplier invoices before making payment? Tip: the specific answer to this question may not be completely found in the textbook. Use your learning and understanding of recording and administering credit purchases to arrive at your answers. Feel free to research other sources to assist you. 4g(ii) If your suppliers provide you with credit terms of 21 days, is it good business practice to pay within 7 days? Why or why not? 4(h) Once you feel sure the supplier invoices are correct, who might you seek authorisation from for payment of the invoices? Draft an email to this person requesting a cheque be drawn for payment to The Pottery Barn for $1100 (incl GST) as it is overdue. This purchase was for 10 decorative ceramic pots customers have been asking for. Provide your email below: From You Send TO CC Subject 4(i) Enter the transaction in the cash payments journal to record the payment of $1100 to The Pottery Barn. Cash Payments Journal Date Chg # Details Account Purchases Other Total or EFT Rent No. of Stock Wages Creditors Payment Paid xxxx xxxx N/A 4G) When reconciling the accounts payable ledger with the accounts payable control account, you discover there is a $750 discrepancy from one of the suppliers - Greenthumbs. Draft an email to the accounts department of Greenthumbs asking for a current statement so you can check any outstanding balances. Provide your email below: From You Send TO CC Subject 4f(v) To minimise errors when reconciling any payments received from debtors, a new integrated financial statement spreadsheet has been established. Required: Click on this link to the Integrated financial statements spreadsheet and answer the following questions. a. If on 30 July Client CD paid the amount owing in full, what would be the balance in the Balance Sheet Bank account? b. If on 30 July Client CD paid only half the amount owing, what would be the balance in the Balance Sheet Bank account? c. Why does the value of total assets remain unchanged when Client CD pays any amount of the outstanding debt? + 4(1). Peters Plants sells artificial plants for indoor and outdoor use. The company is owned and managed by Peter Petersen. Credit Policy Terms and conditions - Standard credit terms are net 30 days. At the end of the month an aged receivables report and overdue accounts are reviewed. Monthly statements are issued at the end of the month. Collection Procedures The following steps are taken regarding the collection of monies owing: 0-30 days current: Invoice/s sent to customer with month end statement 31-60 days overdue account: Overdue sticker sent with next statement 61-90 days overdue account: Phone call informing customer credit facility will be put on hold 91 + days overdue account: If a customer's debt is more than $150 a letter informing the customer their account will be turned over to a collection agency if payment is not received within 14 days. Customer Delinquency A debt that is 90 + days overdue and less than $150 will be written off as a bad debt. Tip: the specific answers to all of the following questions for 4(f) may not be completely found in the textbook. Use your learning and understanding of recording and administering credit sales and dealing with credit customers to arrive at your answers. Feel free to research other sources to assist you. Required: 4f(i). Using the information provided in Peters Plants Aged Receivable report as at 31 March 2018, complete an Overdue Accounts Review. Aged Receivables (Detail) 31 March 2018 Date Total Due 0-30 31-60 61 - 90 91 + Customer/ Invoice No. 8/1/2018 $1200.00 $1200.00 Rosie Rose 000123 Total $1200.00 $0.00 $0.00 $1200.00 $0.00 18/2/2018 S670.00 $670.00 Cam Camelia 000345 Total S670.00 $0.00 $670.00 S0.00 $0.00 5/12/2017 S400.00 $400.00 Leonard Lilly 000567 Total S400.00 $0.00 $0.00 S0.00 $400.00 $2270.00 $0.00 Grand Total Ageing Percent $670.00 29.5% $1200.00 52.9% $400.00 17.6% 0.0% 4g(i) In order to pay the invoices that have been received from your suppliers, what checks would you first undertake on these supplier invoices before making payment? Tip: the specific answer to this question may not be completely found in the textbook. Use your learning and understanding of recording and administering credit purchases to arrive at your answers. Feel free to research other sources to assist you. 4g(ii) If your suppliers provide you with credit terms of 21 days, is it good business practice to pay within 7 days? Why or why not? 4(h) Once you feel sure the supplier invoices are correct, who might you seek authorisation from for payment of the invoices? Draft an email to this person requesting a cheque be drawn for payment to The Pottery Barn for $1100 (incl GST) as it is overdue. This purchase was for 10 decorative ceramic pots customers have been asking for. Provide your email below: From You Send TO CC Subject 4(i) Enter the transaction in the cash payments journal to record the payment of $1100 to The Pottery Barn. Cash Payments Journal Date Chg # Details Account Purchases Other Total or EFT Rent No. of Stock Wages Creditors Payment Paid xxxx xxxx N/A 4G) When reconciling the accounts payable ledger with the accounts payable control account, you discover there is a $750 discrepancy from one of the suppliers - Greenthumbs. Draft an email to the accounts department of Greenthumbs asking for a current statement so you can check any outstanding balances. Provide your email below: From You Send TO CC Subject 4f(v) To minimise errors when reconciling any payments received from debtors, a new integrated financial statement spreadsheet has been established. Required: Click on this link to the Integrated financial statements spreadsheet and answer the following questions. a. If on 30 July Client CD paid the amount owing in full, what would be the balance in the Balance Sheet Bank account? b. If on 30 July Client CD paid only half the amount owing, what would be the balance in the Balance Sheet Bank account? c. Why does the value of total assets remain unchanged when Client CD pays any amount of the outstanding debt? +