The basic principle underlying collection philosophy is to collect the amount owed as close to the credit terms as possible while

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The basic principle of collection philosophy is to collect the amount owed while preserving customer goodwill. While maximizing accounts receivable turnover and minimizing total collection costs are important considerations, they should not come at the expense of damaging the relationship with the customer. Minimizing the cost of capital is also a consideration, but it is secondary to customer goodwill in this context.

The Basic Principle Underlying Collection Philosophy Is to Collect the Amount