Managing Customer Credit and Collections. PACE Revised. Level 2. Unit 17. Research & Development Series No. 240BB17.

This unit on managing customer credit and collections in a small business, the 17th in a series of 18 modules, is on the second level of the revised PACE (Program for Acquiring Competence in Entrepreneurship) comprehensive curriculum. Geared to advanced secondary and beginning postsecondary or adult students, the modules provide an opportunity to learn about and try out entrepreneurship ideas so that students can make a preliminary assessment of how these ideas relate to personal needs. The units on this level contain detailed explanations of small business principles, suggestions on how to find information and use techniques, and encouragement for creating a future business. Students completing this unit should be able to perform these competencies: (1) identify techniques of setting credit limits for credit customers, (2) explain the types of information to be included in a credit record for a customer, (3) describe how an average accounts receivable collection period can be calculated and used to identify credit problems, (4) describe the format that can be used to design an accounts receivable aging system, (5) identify and discuss effective internal and credit collection procedures, and (6) identify and discuss common attitudinal problems managers have about credit collections. The unit is organized into five sections. Following a preliminary section on how to use the unit (with vocabulary and a review of the objectives for this topic on level 1), the unit's information is presented in question-and-answer format. Individual and group activities, an assessment to be completed with the teacher, and sources used to develop the unit follow. A list of the modules of Revised PACE, Level 2 completes the unit. (KC)