Chapter 5: The following exercise will test your understanding of Fitters current credit-check system. In each situation, you are given background data and information about documents in the system (5 pts).

SITUATION 2 Background data Today's date Current list price, NRG-A Current list price, NRG-B Accounts receivable balance at start of business day, KLM Corporation Credit limit, KLM Corporation Current order Product Amount Price Ship to Date desired Next invoice number Documents in system 7/3/13 $1.50/bar $1.60/bar $6,000 $8,000 NRG-B 5 cases (1,440 bars) List KLM headquarters 7/8/13 A1200 Purchase order KLM 82332 for three cases (864 bars) of NRG-A. This order is in the sales order entry program, but it has not been transferred to the accounting program (thus, Accounting does not yet know about this sale)