A system in which payments are sent to a P.O. box and processed by a bank to reduce collection float is called a lockbox system.

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This is true. A lockbox system is a payment processing arrangement in which payment checks are directed to a post office box that is controlled by a bank, instead of being sent directly to the company. The bank then processes the checks and deposits the money into the company’s account, reducing collection float.

A System in Which Payments Are Sent to a P