Mr. Yee and the Green Garden Peter is the manager of a buffet-style, salad bar restaurant called Green Garden. One of his regular customers is Mr. Yee, who owns an import business across the street. For years, Mr. Yee has been bringing his business clients to Green Garden for its buffet lunch. It is convenient, and he always knows it will cost $9.95 per client. Mr. Yee has been a customer since before Peter was even hired. When Peter reviews the accounts receivables for Green Garden, he notices that Mr. Yee's account is more than 90 days past due, which is very out of character. Mr. Yee is still bringing his clients to lunch at least twice a week, but he has not made a payment in over 3 months. Every visit is still recorded in Mr. Yee's house account and added to his running total. Peter searches, but cannot find a written record of the credit terms of Mr. Yee's house account.
Given this information, discuss the following:
1. How should Peter approach Mr. Yee about his past-due house account?
2. What are some possible credit terms that Peter might want to establish for Mr. Yee's account?
a. For the short term?
b. For the long term?
3. Develop a Credit Policy for the restaurant based on your discussions.