Experiencing MIS
Experiencing MIS
8th Edition
ISBN: 9780134792736
Author: KROENKE
Publisher: PEARSON
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Chapter 2, Problem 6CE

Explanation of Solution

Process for adjusting credit:

  • The customers must be allocated with the credit so that they have the available funds to purchase their ordered product.
  • The business consequence for not checking credit is that inventory can be shipped to customers who can’t afford it.
  • The company should adjust credit for the orders which are not approved due to credit or special terms.
  • Thus, it is very important for the companies to keep their customers happy and by doing this, they can be sure that the customers will stick them in the future too.
  • There is no need to notify the entire company about the adjustment. This will just create a chaos and everyone will come up with their opinions, which will be too much to handle...

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