Assume that a buyer calls a seller to order $3,000 worth of goods and her credit limit is $10,000.If the sellers accounts receivable for the customer is already $8,500,how much of the new order will be accepted?
A)The entire amount
B)$1,500 only
C)No amount
D)$10,000 only

Question

Quizplus · Accepted Answer

Since the customer's credit limit is $10,000, her outstanding balance of $8,500 must be subtracted from that limit. This leaves a remaining credit limit of $1,500. Therefore, the seller can only accept an order of $1,500 or less.

Assume That a Buyer Calls a Seller to Order $3,000