B Squared Inc. manufactures and sells awnings all over the southeastern United S

Question

B Squared Inc. manufactures and sells awnings all over the southeastern United States. Each state has a sales representative who is paid on commissions. Each salesperson is responsible for checking the credit of customers as part of the sales process. Buddy has been the top salesman for the past 5 years in a row. You have been hired as the new sales manager and after meeting with your sales representatives, there are some questions being raised as to why Buddy is the top salesperson and the legitimacy of some of the sales being reported. What information would you request from the accounting department to help confirm or negate these accusations? Please provide your response as a reply to this post.

Explanation / Answer

As a sales manager I would request the following information from the accounting department to confirm the legitimacy of some of the sales being reported by Buddy,

1) Sales price charged by Buddy per awnings

2) Proportion cash and credit sales in total sales by Buddy

3) No.of days credit period allowed by Buddy

4) Cash / trade discount allowed on sale by Buddy

5) Major customers of Buddy and their yearly requirement

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