Classic Cars Corporation makes the vast majority of its car sales on credit. What is something Classic Cars Corporation may do to encourage quick payment of these accounts receivable?

Question

Quizplus · Accepted Answer

To encourage quick payment, Classic Cars Corporation can offer some of its customers discounts of between 1 and 2 percent if they pay off their balances within a specified period of time (usually between 10 and 30 days). The larger the early payment discount offered, the faster customers will tend to pay their accounts.

Classic Cars Corporation Makes the Vast Majority of Its Car