Customers who have large A/R balances ultimately end up as bad debt expenses to the firm. Identify and discuss at least three (3) things you can do via QuickBooks to control A/R so that it does not become a bad debt expense for the firm. Justify your response.

 

1. Financial charges such as Interest, Penalty

This is where you can apply additional charges for example interest or penalty on the customers  who delay making their payments on time.

QuickBooks  as  well can identify customers who make maximum faults and act not to make further sakes to this customers taking into consideration it is feasible for us.

2. Discount

This is where   discount   can be  availed to  customers who make their payments early .such discounts acts as an incentive . Using   QuickBooks, this discounts calculation process can be automated for all our esteemed customer.

3.Provision of reminders

 A  gentle reminder can be send or issued  to the customer to make payments on time. The process can be done through collecting letters which can be automated using the "Prepare collection letters" wizard under the Customer Center tab. The format of the letters can be customized and will be sent via mail.