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A Company Has the Following Accounts Receivable Payment History: Paid

Question 113

Multiple Choice

A company has the following accounts receivable payment history: Paid in the month of sale 10%
Paid in the month following sale 30%
Paid in the second month following sale 40%
Paid in the third month following sale 10%
Which action might increase the cash receipts over the coming year?


A) decreasing the price of the products sold by the company
B) giving a cash discount to customers who pay in the month of sale
C) allowing customers longer to pay their accounts receivable balances
D) turning uncollectible accounts over to a collection agency with a proven history of success

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