Snappy Pictures Ltd sell printing canvas The company is owned and managed by the owner Andy Lim Standard credit terms are 30 days At the end of the month an aged receivables report is printed, and overdue accounts are reviewed Monthly statement is issued at the end of the month The following company debt recovery process and collection policy for Accounts Receivable 0 30 days (current) Invoice sent to customer with monthly statement 31 60 days (overdue account) Sent overdue sticker to next statement 61 90 days (overdue account) Phone call to customer informing them that if payment is not made no further credit will be given and credit facility will be put on hold 91 days (overdue account) If customer's debt is more than $50 a letter advising customer that their account will be handed to Collections Agency unless payment is 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 A Debtor's account is deemed delinquent when it has been outstanding for longer than 12 months and all attempts to recoup the outstanding amount have been exhausted, the account will be written off as a bad debt as per the terms set in the organisational credit policy for Snappy Pictures Pty Ltd Accounts Receivable report for Snappy Pictures Ltd as of 30 June 2020 Customer Invoice Date Total amount 0 30 Days 31 60 Days 61 90 Days 91 Days Max Gibson 29 05 20 $ 220 00 $ 220 00 Sam Murphy 15 04 20 $ 880 00 $ 880 00 Erica Baxter 20 03 20 $ 330 00 $ 330 00 Grand Total $ 1,430 00 $ 0 00 $ 220 00 $ 880 00 $ 330 00 Based on the organizational credit policy, what collection procedures would you take regarding the collection of monies as of 30 June 2020 It is recommended to follow the company credit policy for collecting procedures for the below debtors Customer Collection Procedures Max Gibson Invoice $220 An overdue sticker will be issued with the next statement Sam Murphy Invoice $880 A phone call will be made to customer informing them their account will be put on credit hold, and no further service provided until payment is received Erica Baxter Inv $330 Letter will be sent to customer notifying them if payment is not received within 14 days their account will be turned over to a collection agency Develop plans to pursue debt recovery or to initiate legal action for Sam Murphy, with measures completed in line with Snappy Pictures organisational policies, guidelines and timeframes above Follow the instruction below to your supervisor, company management and your accounting colleagues outlining the debt recovery plan for Sam Murphy Make a simulated call to Sam Murphy Explain that the debt is outstanding for more than 60 days with the details Explain that the account is put on hold until the payment is being received After 12 months, if the debt is not recovered, write the debt off in journal entry (Task 5)

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Snappy Pictures Ltd sell printing canvas. The company is owned and managed by the owner Andy Lim. Standard credit terms are 30 days. At the

Snappy Pictures Ltd sell printing canvas. The company is owned and managed by the owner Andy Lim.

Standard credit terms are 30 days. At the end of the month an aged receivables report is printed, and overdue accounts are reviewed. Monthly statement is issued at the end of the month.

The following company debt recovery process and collection policy for Accounts Receivable:

0 - 30 days (current)	Invoice sent to customer with monthly statement
31 - 60 days (overdue account)	Sent overdue sticker to next statement
61 - 90 days (overdue account)	Phone call to customer informing them that if payment is not made no further credit will be given and credit facility will be put on hold
91 + days (overdue account)	If customer's debt is more than $50 a letter advising customer that their account will be handed to Collections Agency unless payment is 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.

A Debtor's account is deemed delinquent when it has been outstanding for longer than 12 months and all attempts to recoup the outstanding amount have been exhausted, the account will be written off as a bad debt as per the terms set in the organisational credit policy for Snappy Pictures Pty Ltd.

Accounts Receivable report for Snappy Pictures Ltd as of 30 June 2020

Customer	Invoice Date	Total amount	0-30 Days	31-60 Days	61-90 Days	91+ Days
Max Gibson	29/05/20	$ 220.00		$ 220.00
Sam Murphy	15/04/20	$ 880.00			$ 880.00
Erica Baxter	20/03/20	$ 330.00				$ 330.00
Grand Total		$ 1,430.00	$ 0.00	$ 220.00	$ 880.00	$ 330.00

Based on the organizational credit policy, what collection procedures would you take regarding the collection of monies as of 30 June 2020? It is recommended to follow the company credit policy for collecting procedures for the below debtors:

Customer	Collection Procedures
Max Gibson	Invoice $220. An overdue sticker will be issued with the next statement.
Sam Murphy	Invoice $880. A phone call will be made to customer informing them their account will be put on credit hold, and no further service provided until payment is received.
Erica Baxter	Inv $330. Letter will be sent to customer notifying them if payment is not received within 14 days their account will be turned over to a collection agency.

Develop plans to pursue debt recovery or to initiate legal action for Sam Murphy, with measures completed in line withSnappy Pictures organisational policies, guidelines and timeframes above.

Follow the instruction below to your supervisor, company management and your accounting colleagues outlining the debt recovery plan for Sam Murphy:

Make a simulated call to Sam Murphy
Explain that the debt is outstanding for more than 60 days with the details
Explain that the account is put on hold until the payment is being received
After 12 months, if the debt is not recovered, write the debt off in journal entry (Task 5)