Although there are some clear disadvantages associated with extending credit to customers,such as bad debt costs,most managers believe a particular advantage outweighs the costs.To which primary advantage do they refer?
A)Increased labor costs
B)Increased bad debt expense
C)Delayed receipt of cash
D)Additional sales revenue

Question

Quizplus · Accepted Answer

The advantage of extending credit is that it helps business customers buy products and services,thereby increasing the seller's revenues.

Although There Are Some Clear Disadvantages Associated with Extending Credit