Assume Fitter Snacker's Existing Information Systems Are in Place An Order Came in from First State TastyBars

question 44

Essay

Assume Fitter Snacker's existing information systems are in place.FS has a customer called First State TastyBars.Here is the background data on FS and First State TastyBars: $\begin{array}{l|l}\text { Today's date } & 4 / 20 / 2001 \\\hline \text { Current list price, NRG-A bars } & 1.00 / 6 a r \\\hline \begin{array}{l}\text { Accounts receivable balance at start of business day, First State TastyBars, as } \\\text { shown on the list available in Marketing }\end{array} & \$ 15,000 \\\hline \text { Credit Limit, First State TastyBars } & \$ 17,000\end{array}$
An order came in from First State TastyBars:
$\begin{array}{|l|l}\hline \text { Product } & \text { NRG-A } \\\hline \text { Amount } & 10 \text { cases (288 bars/case) } \\\hline \text { Price } & \text { List } \\\hline \text { Ship to } & \text { First State TastyBars headquarters } \\\hline \text { Date desired } & 4 / 25 / 2001 \\\hline \text { Next invoice number } & \text { A1200 } \\\hline \text { Customer Purchase Order Number } & \text { FST } 1003\end{array}$
There are some documents in FS's system as follows:
Purchase order FST 988 for 3 cases (864 bars) of NRG-A. This order is in the FS sales order-entry program, but Accounting has not been told about it yet.

A check from FST for $\$ 5184$ was received in yesterday's mail and entered into Accounting's PeachTree program. The check applies to some March 2001 orders. The list of accounts receivable balances that Marketing uses does not reflect this payment.

PeachTree program. The check applies to some March 2001 orders. The list of accounts receivable balances that Marketing uses does not reflect this payment.

A)Given the state of FS's systems,will credit be granted or denied on the current order (purchase order FST 1003)?
B)What is the actual First State TastyBars accounts receivable balance (without considering the current order)?
C)If the FS systems processed transaction data in a more timely way would credit be granted or denied? Why?

• A)Given the state of FS's systems,will credit be granted or denied on the current order (purchase order FST 1003)?
• B)What is the actual First State TastyBars accounts receivable balance (without considering the current order)?
• C)If the FS systems processed transaction data in a more timely way would credit be granted or denied? Why?

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Definitions:

Supply Decreases

A situation where the quantity of a good or service that producers are willing to sell at a given price falls, often due to increased production costs or external factors.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Close Substitute

A good or service that can easily replace another, fulfilling the same need or want, typically affecting consumer choice.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, leading to market equilibrium.