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9. The potential advantages of extending credit to customers include all of the following except higher: revenues wage expenses profits customer satisfaction 10. Extending credit

9. The potential advantages of extending credit to customers include all of the following except higher:

revenues

wage expenses

profits

customer satisfaction

10. Extending credit to customers will introduce all of the following additional costs EXCEPT:

decreased gross profit from reduced sales.

bad debt costs will result when amounts cannot be collected from customers.

delayed receipt of cash may result in requiring the company to take out short-term loans and incur interest costs.

increased wage costs will be incurred to hire people to evaluate whether each customer is creditworthy, track how much each customer owes, and follow up to collect the receivable from each customer.

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