To collect on the trade receivables due to the ﬁrm, a ﬁrm can:

Question

Quizplus · Accepted Answer

Sending a delinquency letter and making personal contact by telephone are both common and less severe first steps a company can take to collect on past due trade receivables.

If those methods fail, employing a collection agency can be a more forceful option. However, legal action against the customer should be a last resort after all other methods have failed, as it can be costly and time-consuming.

Therefore, the best choice is to use all available options (A, B, C, and D) in a strategic manner to attempt to collect on trade receivables efficiently and effectively.

To Collect on the Trade Receivables Due to the ﬁRm