School

Humber College **We aren't endorsed by this school

Course

SCM 5504

Subject

Accounting

Date

Oct 9, 2023

Pages

2

Uploaded by CorporalMoonDragon47 on coursehero.com

Solution 1A:
Georgian Bakery:
NRG-B Bar =$1.60
The credit limit is $12,000
The account receivable balance is $9,250
The current order Product and Quantity for NRG-B are 1152 bars * $1.60 =
$1843.2
The total commitment for Georgian bakery is $9250 + $1843.2 =
$11093.2
Total commitment < credit limit
Hence, the credit will be granted to the Georgian bakery order.
Solution 1B:
NRG-A Bar =$1.50
The current order Product and Quantity for NRG-A are 576 bars * $1.50 =
$864
The total commitment for Georgian bakery is the account receivable +
product and quantity of NRG-A and NRG-B bars = $9250 + $1843.2 +
$864 = $11957.2
Total commitment < credit limit
Although after using the data for NRG-A and NRG-B the revised total
commitments can be granted to the Georgian bakery order.
Solution 2A:
PMK's Corporation
:
NRG-A Bar =$1.50
The credit limit is $9,000
The account receivable balance is $6000
The current order Product and Quantity for NRG-A are 1440 bars * $1.50 =
$2160
The total commitment for PMK's is $6000 + $2160 = $8160
Total commitment < credit limit
Hence, the credit will be granted to the PMK's order.
Solution 2B:
NRG-B Bar =$1.60
The current order Product and Quantity for NRG-B are 864 bars* $1.60 =
$1382.4
The total commitment for PMK's is the account receivable + product and
quantity of NRG-A and NRG-B bars = $6000 + $2160 + $1382.4 =
$9542.4
Total commitment > credit limit
Hence, the total combined data for PMK Corporation can't be granted.
Solution 3A:
Cookies Inc.
NRG-A Bar =$1.50

The credit limit is $10,000
The account receivable balance is $5000
The current order Product and Quantity for NRG-A are 3600 bars * $1.50 =
$5400
The total commitment for PMK's is $5000 + $5400 = $10400
Total commitment > credit limit
Hence, the credit can't be granted to the Cookies Inc. order.
Solution 3B:
Check received = $2800
Account receivable balance after check = $5000 - $2800 = 2200
Total commitment after the check received = $2200 + $5400 = $7600
Therefore, the total commitment is less than the credit limit. Hence, the
total combined data for Cookies Inc. can be granted.

Page1of 2