ACCOUNTING PRINCIPLES I-FINANCIAL CHAPTER 7 WRITING ASSIGNMENT Gerard Appliances, Inc., is a small manufacturer of washing machines and dryers. It sells its products to large, established discount retailers that market the appliances under their own names. Gerard generally sells the appliances on trade credit terms of n/60, but if a customer wants a longer term, it will accept a note with a term of up to nine months. At present the company is having cash flow troubles and needs $10 million immediately. Its Cash balance is $400,000, its Accounts Receivable balance is $4.6 million, and its Notes Receivable balance is $7.4 million. Prepare a memo to the chief financial officer of Gerard explaining how the company can use its accounts receivable and notes receivable to raise the cash it needs. Explain the advantages and disadvantages of using the receivables to raise the cash