Imagine you own a business that sells to customers on trade credit. For example, you manufacture luxury soaps, and you sell these soaps to boutique stores in your hometown area.

In your original post, respond to the following prompts:

How would you manage the collection of

receivables? Even with careful planning, sometimes receivables become uncollectible. Which method would you use to write off an uncollectible account? Explain your

reasons.

What procedures would you put into place to encourage customers to pay their bills on time?