A(n) ______ system is an arrangement that permits a customer's bank to periodically transfer funds from its account to a selling firm's bank account to pay an amount owed to the selling firm.

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A preauthorized debit system allows for automatic transfers from a customer's bank account to a selling firm's bank account, making it the best choice for the given scenario. Disbursement refers more generally to the process of paying out funds, while a lockbox system involves a third-party processor receiving and depositing payments on behalf of a company. Concentration banking involves centralizing funds from multiple accounts to maximize efficiency, and accounts payable refer to funds owed by a company to its suppliers or vendors.

A(n) ______ System Is an Arrangement That Permits a Customer's