The following exercise will test your understanding of Fitter's current credit-check system. In each situation, you are given background data and information about documents in the system.

a. Given the information currently in the system, will credit be granted or denied for ABC Corporation's current order?  
b. If the system processed data in a more timely way, would it change the answer as to whether or not credit be granted?

c. Given the information currently in the system, will credit be granted or denied for KLM Corporation's current order?
d. If the system processed data in a more timely way, would credit be granted or denied?

e. Given the information currently in the system, will credit be granted or denied for ACORN Corporation's current order?
f. If the system processed data in a more timely way, would credit be granted or denied?

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Background data Today's date Current list price, NRG-A Current list price, NRG-B Accounts receivable balance at start of business day, ABC Corporation Credit limit, ABC Corporation Current order Product Amount Price Ship to Date desired Next invoice number Documents in system No documents relating to ABC are in the system 6/29/13 $1.50/bar $1.60/bar $9,000 $12,000 NRG-A 4 cases (1.152 bars) List ABC headquarters 7/5/13 A1001 Background data Today's date Curent list price, NRG-A Current list price, NRG-B Accounts receivable balance at start of business day, KLM Corporation Credit limit, KLM Corporation Current order Product Amount Price Ship to Date desired Next invoice number Documents in system 7/3/13 $1.50/bar $1.60 bar $6,000 $8,000 NRG B 5 cases (1,440 bars) List KLM headquarters 7/8/13 A1200 Purchase order KLM 82332 for three cases (864 bars) of NRG A. This order is in the sales order entry program, but it has not been transferred to the accounting program (thus, Accounting does not yot know about this sale), Background data Today's date Current list price, NRG-A Current list price, NRG-B Accounts receivable balance at start of business day, ACORN Corporation Credit limit, ACORN Corporation Current order Product Amount Price Ship to Date desired Next invoice number Documents in system 7/13/13 $1.50/bar $1.60/bar $6,000 $6,000 NRG-A 150 boxes (3,600 bars List ACORN headquarters 7/15/13 A1300 A check from ACORN was received in yesterday's mail and entered into the sccounting system. The chock is for $2,000, applied to invoices from June's sales. The sales clerks are working from credit- limit printouts prepared at the beginning of the week (two days ago).