Question

As the marketing manager for Pacific Golf Supply Co. (PGS), you have just approved a credit account for Highland Lake Golf Club, a new golf course in northern California. Send Jordan Martin, the golf pro at the club, a letter stating that you have approved a $25,000 initial credit line. PGS offers its customers 2/10, n/30 payment terms and charges interest at an 18 percent annual rate on overdue accounts. Each quarter, PGS reviews its outstanding accounts and offers an increase in its credit line to any customer with a current account. The letter should confirm that the initial order of golf balls, clubs, and accessories has been shipped via UPS ground, with an expected delivery time of 10 days. Encourage Jordan to use his remaining $12,400 credit line to invest in quality display units. Explain that experience demonstrates that sales increase by 25 percent when the product is displayed using your display units. Write the credit approval/order acknowledgement letter to Jordan at 2500 Country Club Drive, Klamath, CA 95548-1200.

Answer 1

Answer:

(Formatted letter is attached with the answer. )

November 2, 2019

Mr. Jordan Martin, Golf Pro

Highland Lake Golf Club

2500 Country Club Drive

Klamath, CA 95548-1200

Dear Mr. Martin:

Subject: Approval of Credit Account and Initial Order Acknowledgement

Congratulations! We are pleased to inform that your line of credit request has been approved and your initial order has been dispatched.

Highland Lake Golf Club has been approved for a line of credit for the amount of $25,000 with the following terms:

• 2/10, n/30  

• 18% annual interest rate on overdue accounts

• Quarterly review of credit account with the opportunity for credit line increases if your account is current.

The initial order of golf balls, clubs and accessories has been shipped via UPS ground and should arrive on November 12, 2019.  

The remaining credit available at this time is $12,400. It is to inform you that you can use the available credit to purchase some of our high-quality display units. Our display units can increase your sales. As per our company statistics from previous clients, using our display units for display has shown sales increase by 25%.

We are really looking forward to helping you get started in this new business venture. We are excited to create a lasting business relationship with you and Highland Lake Golf Club.  

Sincerely yours,

Marketing Manager