Retailers often add a financing charge to a customer's accounts receivable balance

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Retailers may add a financing charge to a customer's account if the account is not paid within a reasonable period of time. This is to compensate the retailer for the time value of money and the cost of financing the customer's purchase. Adding a financing charge is a common practice in the retail industry, and retailers typically disclose the terms of the financing charge in their credit agreements with customers.

Retailers Often Add a Financing Charge to a Customer's Accounts