Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 Year 3 Amounts billed to customers for services rendered $ 410,000 $ 510,000 Cash collected from credit customers 320,000 460,000 Cash disbursements: Payment of rent 86,000 0 Salaries paid to employees for services rendered during the year 146,000 166,000 Utilities 36,000 46,000 Advertising 18,000 41,000 In addition, you learn that the company incurred advertising costs of $31,000 in year 2, owed the advertising agency $5,600 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.

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Having a long credit that will be corrected is better that a short credit that is clear is simply because with long credit history, a prospective lender can see how you have operated your credit facility over a considerable period. nobody's credit history is perfect - everyone has at least 1 or 2 lapses on their record. have short history of your credit doesn't show patterns or trends of persistent late payments.