CREDITS AND COLLECTIONS 325 



FORM XXVII 



The Order Clerk's Credit Card 



Name of Firm 



Street Address 



City or Town 



State 



Nature of Business 



Credit or C. O. D 



Amount of Credit Allowed 



Date 



The ledger contains the most recent and most reHable credit 

 information available. It is convenient, especially in a larger 

 business, to have the amount of credit allowed marked on the 

 ledger leaf in such a way that the meaning thereof may not be 

 understood by any except the regular office employees. It has 

 the advantage that if a firm should take more credit than it 

 is entitled to, then the bookkeeper can at once call the atten- 

 tion of the credit man thereto. 



D. COLLECTIONS 



A business firm will establish its own terms on which its goods 

 are to be sold. Such terms should be fair to the buyer as well 

 as to the seller. The terms should also be fully explained to the 

 customers in order to eliminate all misunderstandings. After 

 the terms have once been established the firm should enforce 

 them to the best of its ability. An organization that is always 

 collecting its accounts on a de§nite, prearranged time will 

 have less difficulty in obtaining prompt payments than a firm 

 making its collections at irregular intervals. By being prompt 

 in making collections the debtor involuntarily comes to realize 

 that it is just as important that the account is paid on time 

 as it is that he receives the goods on time. 



I. Frequency of Making Collections. — The frequency of 

 collecting bills is governed to s(5me extent by the adopted cus- 

 toms of other merchants; however, such customs may in part be 

 ignored. It is customary in most cities to collect weekly for 



