PERFORMANCE TASK 2

MINI CASE ANALYSIS

You are an accounting supervisor who is primarily in charge of credit and collection. You work
for a medium-sized enterprise engaged in the manufacturing of breads, biscuits, pastries and cakes.
In order to expand the market coverage, the marketing manager recommended a program in which
the company will commission dealers from different parts of CALABARZON. Additionally, the
company will be extending credit to these dealers. The Vice President for Finance approached you
and asked for your inputs. Hence, you are to do the following:

1. Summarize your inputs as an accounting supervisor focusing on accounts receivable management.

Explain why you think this will be a good strategy to extend market reach. Explain how the company
will be able to execute their plan of extending credit to dealers. Your goal is to give them a solid
background on accounts receivable management (5Cs may be used on how your company will sort
the applicant dealers to be given credit) (Minimum of 12 sentences)

By doing this program, we’ll be able to reach more people in different parts of CALABARZON,
thus increasing the sales. Before doing this program, we will need to have an elaborate plan to
be able to run this program smoothly. So first we need to make contract with dealers. When
extending the credits to these dealers, they will gladly take our offer of commission as our offer
of extending the credit is in favor of them. With enough budget for bad debts that is needed
when extending the credits to the dealers, we will be able to execute this plan properly and
smoothly. But we can’t just give credits to just anyone. We have to make sure that our business
partners are to be trusted. To make sure that the debts of the dealers can be payed on time, we
will need to make sure that the amount of credits they’re going to take is in their capacity.
Calculating the difference of their revenue and debt can help in deciding how much credit we
can give. One more factor to help in deciding which dealers to trust is their reputation on the
field. One’s character can say a lot when we are deciding if we can trust them. Choosing the
right partners will help in running the business smoothly.

2. Create a simple credit sheet. Your goal is to show to the Vice President for Finance a sample of credit
information sheet which may be used by the company when they start accepting applications from
potential dealers.
 Personal Information

Name:

Address:

Contact Number:

Email Address:

Business Information

Name of business:

Year of running this business:

Shipping address:

Telephone:

Type of business:

Bank Information:

Trade References

Terms with other trades:

Credit limit with other business:

History of collection and payment with others: