Melbourne Manufacturing Company is a new start-up business that has not yet opened its doors.The controller for the company is concerned about the best way to process accounts receivable.The controller expects each individual sale to be relatively large,and her goal is for all customers to pay on an individual invoice basis.The marketing department's sales forecast estimates that Melbourne will build a customer base of 1,800 in six to nine months.
Required:
a.What is the appropriate accounts receivable processing method for Melbourne Manufacturing? Describe how it would work.
b.Describe the concept of cycle billing.What are the potential benefits of cycle billing for Melbourne Manufacturing?

Question

Quizplus · Accepted Answer

The Answer of Melbourne Manufacturing Company is a new start-up business that has not yet opened its doors.The controller for the company is concerned about the best way to process accounts receivable.The controller expects each individual sale to be relatively large,and her goal is for all customers to pay on an individual invoice basis.The marketing department's sales forecast estimates that Melbourne will build a customer base of 1,800 in six to nine months.
Required:
a.What is the appropriate accounts receivable processing method for Melbourne Manufacturing? Describe how it would work.
b.Describe the concept of cycle billing.What are the potential benefits of cycle billing for Melbourne Manufacturing?

Melbourne Manufacturing Company Is a New Start-Up Business That Has