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Read the article How to Beat the Deadbeats in the February 24, 2005, issue of BusinessWeek. (The book's Website provides a free link.) Required What

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Read the article "How to Beat the Deadbeats" in the February 24, 2005, issue of BusinessWeek. (The book's Website provides a free link.) Required What does Carol Frischer say is the reason that small businesses have problems collecting on their receivables? What does Frischer recommend businesses do to collect their receivables? The following information is from the annual financial statements of Raheem Company. Compute its accounts receivable turnover for 2009 and 2010. Compare the two years' results and give a possible explanation for any change (assume that competitors' average accounts receivable turnover is 7). Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 3% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 2% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June. (The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.)

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