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The Accounts Receivable (Sales Ledger) of Cookridge Carpets - Essay Example
Author : simonisted
Finance & Accounting
Pages 14 (3514 words)
This paper is a review of the accounts receivable (sales ledger) of Cookridge Carpets that has numerous weaknesses. Stefan himself decides that the existing credit term policy is not appropriate and subsequently changes it with the policy requiring check the credit worthiness of the potential customers. …
The firm that is analyzed in the paper is Cookridge Carpets Ltd. It is a large carpet, soft furnishings and bed Dealership Company located in Southampton. The company was established in the year of 2007, works as the main dealer for Memo@memory foam beds and mattresses. The company is owned by two brothers Peter and John Cookridge. The Cookridge Carpets has three major stakeholders: Suppliers, customers, and staff. Memo Beds, in the year of 2010, offered the main dealership to the Company in the area of Southampton as the local dealer for the Memo Beds. The Company provides its services to the local residents of the Southampton and the local residents are the main customers of the Cookridge Carpets. The owners of the business have a considerable experience in direct sale of carpets and beds to the locals. However, recently they have gained accessed to the Internet and have made a significant sale via the Internet. As a result, the business has considerably increased. Currently, the company employs 20 members of staff including nine direct sales staff, two cleaners, three internet sales staff, one accessories salesperson, two car delivery drivers and three part-time staff in the small accounts department. There are three staff members in the accounts office: Sonja Douglas, Stefan Kalinowski and Margaret Peterson. Sonja Douglas is Wages clerk. Stefan Kalinowski is Accounts Clerk and Margaret Peterson is also Accounts Clerk. Accounts payable or purchase ledger is maintained by Peter Cookridge and Margaret Peterson also works in this department. ...