When managing accounts receivable, a good strategy to employ without losing future sales is to
A) send the accounts to a collection agency.
B) tighten the credit terms.
C) offer cash discount.
D) make frequent personal visits to the customer.

Question

Quizplus · Accepted Answer

Offering cash discounts is a good strategy to motivate customers to pay their bills on time. This way, the company can keep the customer happy and maintain the relationship while also improving cash flow. Sending accounts to a collection agency and tightening credit terms may result in lost sales and damage to customer relationships. Making frequent personal visits may be time-consuming and not always effective.

When Managing Accounts Receivable, a Good Strategy to Employ Without