The Pinecrest customer account triggers this collection issue: account exceeds approved credit limit. Which administrative record should be created?
Correct Answer
D) credit-hold notice
Collection controls should document holds, escalation, and follow-up when customer credit risk appears.
Why This Is the Correct Answer
Collection controls should document holds, escalation, and follow-up when customer credit risk appears.
Why the Other Options Are Wrong
Option A: fleet assignment card
fleet assignment card puts the item in the wrong financial bucket, timing, base, or comparison for collection administration.
Option B: bid room log
bid room log puts the item in the wrong financial bucket, timing, base, or comparison for collection administration.
Option C: permit inspection note
permit inspection note puts the item in the wrong financial bucket, timing, base, or comparison for collection administration.
Memory Technique
Collection ledger for Office Manager: put controls in the right drawer.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Customer Credit and Collections; use the stated business record or control rule to verify the answer.
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