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Unit 4 - Coggle Diagram
Unit 4
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Credit sales
Flow of Credit Sales
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Sales are recorded, and debtor entries are raised (Revenue Recording Function)
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Credit risks are managed, and efforts are made to ensure prompt payments (Credit Management Function)
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Credit Sales Process
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Credit Management Function: Manage credit risks, limit bad debts, and encourage prompt payments.
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Dispatch Function: Fulfill orders accurately and promptly, ensuring authorization.
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Integration
Each function is interconnected and contributes to the overall efficiency and effectiveness of the credit sales process.
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Sales Adjustments
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Controls
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Segregation of duties (receiving, processing, records)
Strict controls for documentation (input, processing, output)
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Activities
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Other adjustments (discounts, corrections, bad debts)
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