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A company's accounts receivable days went from 32 days in 2022 to 25 days in 2023. The business sales are consistent throughout the year. Management
A company's accounts receivable days went from 32 days in 2022 to 25 days in 2023. The business sales are consistent throughout the year. Management tells you that eight months ago, they added an additional accounts receivable clerk to the accounting department, who is solely responsible for collection. Now they are in the process of reviewing their payment terms and have started offering discounts for early payment as well as moving customers who have a record of slow payment from 30 day terms to payment due on receipt. What would likely happen to the company's accounts receivable in 2024 (next year)? A) accounts receivable days will increase B) accounts receivable days will decrease C) accounts receivable days will remain stable
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