If a company decreases its cash discount offer from 3/10, n/30 to 2/10, n/60, then it would expect its accounts receivable collection period to

Name: If a company decreases its cash discount offer from 3/10, n/30 to 2/10, n/60, then it would expect its accounts receivable collection period to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Decreasing the cash discount from 3% to 2% makes the discount less attractive, likely leading to fewer customers taking advantage of it, thus increasing the accounts receivable collection period.

If a Company Decreases Its Cash Discount Offer from 3/10