The action of writing off a past-due accounts receivable is not a task not taken lightly. Let's say your business has a customer that is past-due and owes you a total of $10,000. Your company has made attempts to collect, but it's finally time to write off the balance. Suppose a few months pass, and the customer presents a check for $10,000 to "right their wrong" because they're hoping credit will, once again, be extended. Or, at least, they wanted to pay their debts. Discuss the following: Under what circumstances would you restore the customer's line of credit (account receivable) with your business? 

What kind of safeguards would you put in place to keep a default from happening again? 

Why do you think it's important that the employee authorized to write off accounts should not have daily responsibilities related to cash or accounts receivable?

Answer rating: 100% (QA)

Answer Restoring a customers line of credit accounts receivable after they have previously defaulted on their payments requires careful consideration ... View the full answer