Bob plans to allow certain customers to pay in installments during the next 4 months. What kind of planning is this? How can accounting assist him in this process?

Question

Business

Matthias Ritter

8 October, 21:31

Bob plans to allow certain customers to pay in installments during the next 4 months. What kind of planning is this? How can accounting assist him in this process?

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Answers (1)

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Kyler Huffman · Answer 1

Bob uses the short term planning and the accounting system used to set up the accounts receivable, also keeping the track of how much every customer owes and the payment made.

Explanation:

Short term planning is the planning which comprise of the process that states the results within a year.

Accounts receivable is the amount or sum of money which is due or owed to a business or firm for the services or goods used or delivered but not paid for by the customers.

In this case, Bob allows the customer to pay in instalments in the next 4 months. So, it is a short term planning which is used by Bob and the accounting system which assist the process is the accounts receivable where money owed to customer.

Note: Options are missing so providing the direct answer.