Extending the credit period granted, with all other components of the credit policy remaining unchanged, will most likely cause:

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Extending the credit period typically leads to an increase in sales because more customers are attracted by the more lenient payment terms. It can also lead to an increase in bad debts, as longer credit terms might increase the risk of defaults. Additionally, accounts receivable is likely to increase because sales on credit that take longer to collect will accumulate. Therefore, none of the provided options accurately describe the effects of extending the credit period.

Extending the Credit Period Granted, with All Other Components of the Credit