1.) In your opinion, what is the one most important step the credit department can take in their investigation to determine if credit should be extended to a new customer? Explain your reasoning.

2.) Explain why Accounting Principles require us to record Bad Debt Expense at the end of a period/year, even though the accounts (in Accounts Receivable) may not have gone bad yet.

Answer rating: 100% (QA)

1 The credit department can obtain the past financial statements of the customer in order to check t... View the full answer