A Company Has the Following Accounts Receivable Payment History Which of the Following Actions Might Increase the Cash Receipts

question 60

Multiple Choice

A company has the following accounts receivable payment history: $\begin{array}{ll}\text { Paid in the month of sale } & 10 \% \\\text { Paid in the month following sale } & 30 \% \\\text { Paid in the second month following sale } & 40 \% \\\text { Paid in the third month following sale } & 10 \%\end{array}$ Which of the following actions might increase the cash receipts over the coming year?

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

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