Read the article, How Plastic Put Sears in a Pickle in the October 30, 2002, issue of


Read the article, “How Plastic Put Sears in a Pickle” in the October 30, 2002, issue of Business Week. (The book’s Website provides a free link.)

Required 1. What two types of credit cards does Sears issue to its customers?

2. What is Sears’ overall bad-debt charge-off rate as a percent of its receivables?

3. How many years does it usually take before a retailer’s charge-off rates on new charge card pro¬ grams peak?

4. What are the average balances carried by customers on the Sears MasterCard and on the Sears card? How do these balances compare to balances carried by consumers on general-purchase cards?

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Fundamental Accounting Principles

ISBN: 9780072946604

17th Edition

Authors: Kermit D. Larson, John J Wild, Barbara Chiappetta

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