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Explain business consequences if you debit customer credit

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1. Based on Figure 2-7, explain the business consequences if you debit customer credit in step 1, but then in steps 2 or 3 do not return credit for orders that you cannot process.

2. Recommend a process for adjusting credit for orders that are not approved. Who, in particular, should make the adjustment, and how do they receive the data they need to do so?

3. In Figure 2-7, explain why inventory must be allocated to orders in step 2. What is the business consequence if these allocations are not adjusted when special terms are not approved?

Reference no: EM13895096

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