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OPEN INVOICE METHOD

Customers pay according to each invoice.

two copies of the invoice mailed to the customer, with instructions to return one with payment

What are examples of additional information the AIS 

should provide?

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response time to customer inquires

time required to fill and deliver orders

percentage of sales that require back orders

customer satifaction

analysis of market share and tends

profitability analyses by product, customer, and sale region

Agents/Entities:

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1. CASHIER

2. THE ACCOUNTS RECEIVABLE FUNCTION

Exposures:

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earnings management

uncollectible sales and losses due to bad debts

customer dissatisfaction