Exercise 4-2 (10 minutes)
Operating cycle of a merchandiser with credit sales follows (chronological):
Exercise 4-3 (20 minutes)
In today’s competitive world, organizations must concentrate on meeting their
customers’ needs and avoiding dissatisfaction. If these needs are not met
and dissatisfaction grows, the customers will deal with other companies or
entities. One measure of dissatisfaction of customers is the amount of sold
goods that are later returned. Customer dissatisfaction needs to be
understood and then dealt with promptly to encourage them to remain loyal.
The reasons for the return also need to be determined to allow the problem to
be avoided in the future. For example, the returns might arise from product
defects, shipping damage, misleading information provided at the time of sale,
or fickle customers.