More aggressive collection procedures usually increases:
A) average collection period.
B) percentage of bad debts.
C) credit sales.
D) b and c
E) None of the above

Question

Quizplus · Accepted Answer

More aggressive collection procedures may not necessarily increase credit sales, and they may result in an overall decrease in the average collection period. However, implementing tougher collection policies may increase the percentage of bad debts since customers who are unable to pay their bills may become frustrated and decide to purchase from a competitor. Therefore, none of the given options is a suitable choice.

More Aggressive Collection Procedures Usually Increases