Solved

A Company Has the Following Accounts Receivable Payment History Which of the Following Actions Might Increase the Cash Receipts

Question 60

Multiple Choice

A company has the following accounts receivable payment history:  Paid in the month of sale 10% Paid in the month following sale 30% Paid in the second month following sale 40% Paid in the third month following sale 10%\begin{array}{ll}\text { Paid in the month of sale } & 10 \% \\\text { Paid in the month following sale } & 30 \% \\\text { Paid in the second month following sale } & 40 \% \\\text { Paid in the third month following sale } & 10 \%\end{array} Which of the following actions might increase the cash receipts over the coming year?


A) allowing customers longer to pay their accounts receivable balances
B) turning uncollectible accounts over to a collection agency with a proven history of success
C) giving a cash discount to customers who pay in the month of sale
D) decreasing the price of the products sold by the company

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents