Billing and Payment Disputes in Accounts Receivable

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School

Florida Atlantic University**We aren't endorsed by this school

Course

ECO 4530-001

Subject

Accounting

Date

Dec 31, 2024

Pages

Uploaded by SuperHumanTitaniumRat36

Billing and Payment Disputes in Accounts Receivable1.When a customer disputes an invoice, which of the following should the accounts receivable clerk do first?A. Send a reminder of the due dateB. Discuss the issue with the customer and verify the detailsC. Immediately apply late payment feesD. Write off the disputed amount2.If an accounts receivable clerk determines that an invoice is incorrect due to a billing error, what is the proper next step?A. Adjust the invoice amount and resend it to the customerB. Write off the invoice amount as uncollectibleC. Contact the customer for payment immediatelyD. Report the issue to the audit department3.When sending out reminders for overdue payments, which communication method is most effective?A. Sending a single reminder after one weekB. Making multiple contact attempts, including phone calls and written remindersC. Ignoring the payment and hoping it will be received eventuallyD. Sending a final demand letter only at the end of the month4.What should be included in a customer payment agreement to prevent future disputes?A. Clear payment terms, including due dates and penalties for late paymentB. A blanket clause allowing for discounts at the company’s discretionC. A clause that states the customer is not liable for any payment delaysD. Unclear terms that can be adjusted later5.If a customer claims that an invoice was never received, what should the accounts receivable clerk do first?A. Ignore the claim until further communicationB. Verify the customer's contact information and resend the invoiceC. Assume the customer is attempting to avoid paymentD. Write off the invoice as bad debt6.What is a "credit memo" used for in accounts receivable?A. To issue an additional charge to a customerB. To adjust a customer’s account due to returns, overpayments, or errorsC. To reduce the company's revenueD. To verify a payment transaction has been completed7.In accounts receivable, a "partial payment" refers to:A. An invoice that has been completely paid

B. A customer payment that does not fully cover the outstanding balanceC. A payment made after the due dateD. A payment made in multiple installments8.If a customer consistently misses payment deadlines, what action should the accounts receivableclerk take?A. Ignore the delays and continue processing future ordersB. Contact the customer to discuss the possibility of adjusting payment termsC. Immediately discontinue business with the customerD. Automatically increase the invoice amount as a penalty9.Which of the following is NOT typically part of the accounts receivable aging report?A. Customer nameB. Invoice numberC. Payment method usedD. Amount overdue10.When a customer’s check bounces, the accounts receivable clerk should:A. Ignore the bounce and proceed as if payment was receivedB. Charge the customer a returned check fee and ask for an alternative payment methodC. Write off the payment as uncollectibleD. Report the issue to the police immediately11.Which of the following is a common indicator that an accounts receivable department needs improvement?A. Receivables are consistently collected on timeB. Customers frequently dispute invoicesC. Payment terms are not clearly definedD. Regular, open communication with customers12.When recording a payment received from a customer, the accounts receivable clerk should:A. Immediately recognize the revenue in the current periodB. Verify that the payment matches the invoice amountC. Ignore any discrepancies with the paymentD. Wait until the end of the fiscal year to record the payment13.A customer requests an extension on their payment due to financial hardship. What should the accounts receivable clerk do?A. Grant the extension without consulting managementB. Refuse the request and demand immediate paymentC. Assess the situation and escalate the request to management for approvalD. Automatically reduce the payment amount

14.Which of the following is typically used to follow up with a customer on a late payment?A. A letter demanding immediate paymentB. A phone call and email combinationC. A notice of intent to terminate serviceD. A note explaining a discount15.What is the purpose of a "collection agency" in accounts receivable?A. To directly apply payments to customer accountsB. To handle long-outstanding debts that cannot be collected internallyC. To issue customer refundsD. To review payment terms for customers