Morrison Company received a letter from Mary Furman, a customer. Mary had purchased $425 worth of clothing from Morrison on credit. She has made two payments of $50 each. She has missed the last two payments, and has received a collection letter from Morrison. Her total debt presently, with interest and late fees, is $351.13.
Mary sent a letter to Morrison in which she asked for her debt to be forgiven. She said she had heard that companies make allowances for accounts they are doubtful about collecting, and that Morrison certainly should have been doubtful about her-that as a college student she had changed her major three times. She also said that she could not enjoy a high quality of life when making such high payments, but that she didn't want to be embarrassed by bill collectors, either. She especially didn't want her parents to find out that she had not paid her debts. Having Morrison write off her account seemed to her the best solution in the circumstances. She added that the clothes she bought at Morrison were among the best she had ever owned, and that she "told everybody" that Morrison was definitely the best place to get clothes.
Required:
You are the accounting manager for Morrison. Write a short letter to Mary explaining why her debt cannot be written off.

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The Answer of Morrison Company received a letter from Mary Furman, a customer. Mary had purchased $425 worth of clothing from Morrison on credit. She has made two payments of $50 each. She has missed the last two payments, and has received a collection letter from Morrison. Her total debt presently, with interest and late fees, is $351.13.
Mary sent a letter to Morrison in which she asked for her debt to be forgiven. She said she had heard that companies make allowances for accounts they are doubtful about collecting, and that Morrison certainly should have been doubtful about her-that as a college student she had changed her major three times. She also said that she could not enjoy a high quality of life when making such high payments, but that she didn't want to be embarrassed by bill collectors, either. She especially didn't want her parents to find out that she had not paid her debts. Having Morrison write off her account seemed to her the best solution in the circumstances. She added that the clothes she bought at Morrison were among the best she had ever owned, and that she "told everybody" that Morrison was definitely the best place to get clothes.
Required:
You are the accounting manager for Morrison. Write a short letter to Mary explaining why her debt cannot be written off.

Morrison Company Received a Letter from Mary Furman, a Customer