The advantage of extending credit to customers is that it helps customers to buy products and services,thereby increasing the seller's revenue.The disadvantages of extending credit are costs related to:
A)increased sales.
B)bad debt expense.
C)increased notes receivable.
D)marketing.

Question

Quizplus · Accepted Answer

Generally,managers find that the incremental gross profit obtained by increasing sales on account is greater than the additional costs of extending credit (increased wage costs,bad debt costs,and delayed receipt of cash).

The Advantage of Extending Credit to Customers Is That It