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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
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 of the following actions might increase the cash receipts over the coming year?
allowing customers longer to pay their accounts receivable balances
turning uncollectible accounts over to a collection agency with a proven history of success
giving a cash discount to customers who pay in the month of sale
decreasing the price of the products sold by the company
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