Which of the following statements is NOT correct?
A)Collection policy is how a firm goes about collecting past-due accounts.
B)A more aggressive collection policy will reduce bad debt expenses, but may also decrease sales.
C)Collection policy usually has little impact on sales since collecting past-due accounts occurs only after the customer has already purchased.
D)Typically, a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account.

Question

Quizplus · Accepted Answer

This statement is not correct as collection policy can have an impact on sales as customers may be hesitant to purchase from a company known for aggressive collection practices.

Which of the Following Statements Is NOT Correct