Table of Content
CHAPTER 1 - INTRODUCTION
1.1.Background of the Study
1.2.Statement of the Problem
1.3.Objectives of the Study
1.4.Significance of the Study
1.5.Scope and Limitations of the Study
CHAPTER 2 – REVIEW OF RELATED LITERATURE
2.3.Policy on Granting Collection on Accounts Receivable
2.4.Treatment on Uncollectible Accounts
CHAPTER 3 – RESEARCH FRAMEWORK
CHAPTER 4 – RESEARCH DESIGN AND METHODS
4.1.Description of the Research Design
4.2.Data Gathering Methods and Instruments
Analysis of the management of accounts receivable applied by Avon Company Inc. in Angeles City as to its effect on the profitability for the Years 2001-2011.
In Partial Fulfillment of the
Requirement for the Degree of
Bachelor of Science in Accountancy
Manaloto, Lovely Anne
1.1 BACKGROUND OF THE STUDY
This study aims to determine the management of accounts receivable of Avon Company in terms of the company’s sales, customers, policy on granting and collections of accounts receivables and treatments of uncollectible accounts in order to fully analyze their effects on the profitability of the said company.(Write discussions of the different factors you considered, i.e., sales, customers, policy on granting and collections of accounts receivables and treatments of uncollectible accounts. You can get these from reviews of literatures. You have to cite the references.) Direct selling is a type of sales channel where products are marketed directly to customers, eliminating the need for middlemen – wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in group or party format, or online. At Avon, the “direct” part of direct selling also refers to the personal component of this sale channel, it’s about building relationships with people and offering them a high level of service and personal attention.(What normally differentiates direct selling from regular selling? Support your answers with reviews of literatures) You need to do an interview related to how avon company apply A/R management. This must include those factors you have you have indicated above. Also, do they apply the same management of accounts receivable for the past ten (10) years? OVERVIEW Avon is the world's leading direct seller of beauty and related products, with over $8 billion in annual revenues and over 40,000 employees. The company market to women around the world through more than 5 million independent sales representatives in over 100 countries. Avon is widely recognized as a top global brand and a world leader in lipsticks, fragrances and anti-aging skin care.
In the Philippines, Avon started in 1978 with the acquisition of Aura Laboratories, Inc., the manufacturer of Beautifont products and its cosmetics distribution company Beutifont Products, Inc. In 1983, Aura Laboratories became Avon Manufacturing, Inc. (APMI) and Beautifont Products, Inc. was renamed Avon Cosmetics, Inc. (ACI). Avon Products Manufacturing, Inc. had its first plant in Libis, Metro Manila and stayed there for 18 years. The plant was later on relocated to Calamba, Laguna where we are now on our seventh year of operation. Product and Services:
It manufactures high-quality cosmetic, fragrance and toiletry (CFT) products which are expertly marketed by tens and thousands of Avon Representatives nationwide. APMI also exports products to Malaysia, Thailand and Vietnam and is currently working on expanding its customer base worldwide. Cultures and Values:
Avon Products Manufacturing, Inc. strives toward a common goal that is rooted deeply on Avon's corporate vision. We will be the supplier of choice, world-class cosmetic, and fragrance and toiletry...