Describe the credit function\'s duties for monitoring customer payments and handling bad debts

The final approval for writing off an account should come from an office of the company who is not responsible for credit or collections. In some entities, the accounts written off are turned over to a collection agency for continuing collection efforts. The main control that authorizes shipment of goods or performance of services is payment or proper credit approval for the transaction. The entity's controls should prevent goods from being shipped to customers who are not being billed. The billing function is also responsible for handling goods returned for credit. A receiving document should first be issued by the receiving department to acknowledge receipt of the returned goods