To collect on the accounts receivable due to the firm, a firm can:
A)send a delinquency letter of past due status to the customer.
B)make personal contact by telephone.
C)employ a collection agency.
D)take legal action against the customer as necessary.
E)All of the above.

Question

Quizplus · Accepted Answer

Each option listed can be an effective method for the firm to collect on accounts receivable. Sending a delinquency letter puts the customer on notice of the overdue payment and may motivate them to make a payment. Making personal contact by telephone can be more effective than a letter, as it allows for direct communication and negotiation. Employing a collection agency can be useful, as they have specialized skills and tactics for collecting on overdue accounts. Taking legal action may be necessary in extreme cases where other methods have failed. By utilizing all of these options, the firm has a better chance of successfully collecting on its accounts receivable.

To Collect on the Accounts Receivable Due to the Firm