If the firm's credit period is increased, the sales volume can be expected to ___________ , the investment in accounts receivable can be expected to __________, and the bad debt expenses can be expected to__________.

Question

Quizplus · Accepted Answer

Increasing the credit period typically leads to higher sales volume as customers have more time to pay. This results in a higher investment in accounts receivable and potentially higher bad debt expenses due to increased risk of non-payment.

If the Firm's Credit Period Is Increased, the Sales Volume