Megamart office Supplies - Key Digital office

Key Digital Office Supplies                Phone:                 (612)-840-3204

23256 Manhattan Rd.                                 Fax:                 (612)-840-3205

September 28, 2014

Ms. Tammy Johnson

Megamart Office Supplies

2378 Parkview Avenue

Duluth, MN 55811

Dear Ms. Johnson:

Subject: Account 4128-123 September 27 Late Payment Phone Call

We have just received and reviewed your phone call on September 27, 2014 in regards to the late payment that did not arrive on time. As someone who values your business, I have already begun to find a solution to resolve this problem. You should receive payment prior to October 8, 2014.

The purpose of this letter is to inform you that our company is having some budgeting problems due to a recent advancement merger with Verbansky Corporation. On September 27 we noted that the account referenced above has one late payment dating back 15 days. Now that we have your phone call we know the payment should have been made prior to September 12. While in the process of merging with Verbansky, our original investment price was increased due to a change in a recent bill that passed causing the taxes to increase. This has caused a shortage in cash within our company that will be resolved within 10 days through a large business inflow of cash receipt. We have since taken a careful look at our financial situation and made the appropriate changes so this does not happen again. You can be sure that we will remain consistent with our payments as we have over the past 13 years with Megamart.

Your business and trust are important to us, Ms. Johnson. Although we missed a payment date, we do not want to lose Megamart as one of our primary suppliers. Over the past 13 years we have gained the respect of Megamart, and hope to continue benefitting from one another. I hope the prompt payment delivery of 10 days from now will keep business between our companies.

Sincerely,

   Bill Johnson

Bill Johnson

Accounting Manager

Key Digital Office Supplies

Tammy Johnson, a sales manager from one of your company’s suppliers, Megamart Office Supplies, has called to complain that a recent invoice hasn’t been paid yet. The payment was due in 30 days, and 45 days have gone by without payment. You are aware of the situation, but your company is suffering from a short-term “cash crunch” and cannot afford to pay the invoice until after the receipt of a large cash inflow which is expected to occur in about ten days.