Under a lockbox system, customers' payments are initially received by the company's:

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Under a lockbox system, customers' payments are initially received by the company's bank. The bank processes the payments and then transfers the funds directly to the company's account, reducing the lag time between when the payment is received and when it is available for use by the company. This system is especially useful for companies with a high volume of payments, as it speeds up the collection and processing of funds.

Under a Lockbox System, Customers' Payments Are Initially Received by the Company's