a. Nutware Productions Inc. generated sales of $30,000 and gross profit of $10,000 last year. The company estimates that it would have generated sales of $60,000 if it had extended credit, but this would involve additional costs for associated wages and bad debts totalling $25,000. Should the company extend credit? 

b. Assume Reitmans (Canada) Limited currently allows customers to purchase merchandise using national credit cards like Visa and MasterCard, yet discontinued its own private credit card program. What pros and cons would lead Reitmans to continue with national credit cards but not its own private credit card program? Assume in its annual report for the year ended January 31, 2017, Reitmans removed $56 million of credit card transactions awaiting settlement from Accounts Receivable and instead reported them as Cash and Cash Equivalents. What characteristic of national credit cards makes this reclassification appropriate?