Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
OCTOBER
24,
THE MUSIC TRADE REVIEW
1925
5
Music Dealers' Instalment Sales and
Their Collection Problems
Collection Records for the Retail Music Store—The Ledger Used as a Collection Record—The Stop Card
—How to File Follow-Up Records—The Analysis of the Account Record—Using Records to Revive
Dead Accounts — Fourth of Series of Articles by J. K. Novins
T
HAT the matter of keeping proper record
of instalment accounts with a view to
facilitating the collection process is of
great importance cannot be disputed. It is a
problem that commands constant attention in
—
DENVER
for
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MUSIC CO.
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LoMtalmi.
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1.
T H E KNIGHT-CAMPBELL
the ledger system ment is entered in the seventh column. In the
Music Co., Den- remaining columns the bookkeeper enters the
is illustrated with date when each payment was received, as well
as a record of the collection statements * and
this ledger sheet notices sent. The last column is reserved for
remarks.
This, as you can see, serves as a perpetual
record of the account, as you can tell at a
glance how much has been paid, how much of
the balance is due, and the history of collec-
tion-follows to secure the payments.
While the ledger record method is effectively
used by the Denver music house, there is, how-
ever, one disadvantage in using even this ex-
cellent ledger record, and that is, you cannot
conveniently group the pages for follow-up
work. Record cards are much better for this
purpose, as these can be readily removed from
the file and shuffled into the desired groups.
Also, by the use of the colored tickler attached
to the card, the collection man can quickly pick
out those accounts that need to be followed up
at a given time.
SHUT NO.
bftilla
I
up, the writer can recommend
used by the Knight-Campbell
ver, Colo. This ledger record
this article as Figure 1.
The reader will notice that
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CREDIT INFORMATION
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Figure 1
the music store. During an extended tour from IS ruled off and printed to contain three classes
coast to coast, the writer recently had the op- of credit information about the instalment cus-
portunity to observe some of the practices in tomer.
First, a record of the sale. Here is entered
music stores, and these will be briefly outlined
such details as the name and address of the
in this article.
In planning a record system the music dealer customer, the location, make, number and style
lias in mind two things—to reduce the number of the musical instrument, and by whom sold.
of records of each account to a minimum, and These details are followed by full information
to facilitate the sending of statements and other about the contract sale, as well as the date of
collection literature at the most appropriate recording the sale and in which county record-
ed. The commission earned by the salesman is
times.
The ledger record very often is impracticable also entered, and when and to which salesman
the commission was paid.
„„.
1925 MOUNT
•
Second, credit information about the cus-
tomer. Here is recorded the customer's busi-
ness address, name of employer, and the names
of references and their reports. This informa-
tion is necessary for proper collection of ac-
count, especially when it becomes delinquent.
Third, a record of payments of the account.
As soon as the instalment sale is recorded, the
dates of the payments and the amounts to be
paid are listed in the first four columns. In the
Figure 2
for collection follow-up, as the accounts cannot fifth column, under "Credit," you enter each
be quickly and conveniently grouped. Further- payment as it is received, together with notation
more, the average ledger sheet docs not contain of the interest received with each payment. This
the full information necessary for proper fol- is important, as on some instruments the cus-
tomer is required to pay interest on each pay-
low-up work.
ment, the interest being figured on the length
The Ledger Record
For the benefit of music dealers who prefer of time the amount has been outstanding from
to depend on the ledger for collection follow- date of sale. The balance due after each pay-
The Card Record
A card that can be conveniently used for this
purpose is shown in Figure 2. On this card is
written the customer's name, residence and
business address. In the upper left hand cor-
ner is entered the ledger folio number. In the
space to the right is entered the state of the
account month by month. The amount due is
entered in the upper right-hand corner. The
last payment is entered directly under the cus-
tomer's name and address. In the space on the
top line, next to the word "Stop," the credit
man notes the date of follow-up.
A. E. Powell, credit manager of the Denver
Dry Goods Co., Denver, Colo., designed this
card after he had made a study of the record
methods employed by such stores as Marshall
Field, of Chicago. He has found it a much-
needed improvement over the ledger record.
P O U O
Highest
Quality
Figure 3
A number of big stores, chiefly on the Pacific
Coast, have adopted Mr. Powell's idea.
How Card -Record Is Used
On the reverse side of this card the credit
manager enters the dates of follow-up and the
nature of collection notices sent to customer.
(Continued on page 9)
Highest
Quality