Exercise 8-10

The following is a list of activities that companies perform in relation to thei receivables Match each of the activities listed below with a purpose of the activity 1. Selling receivables to a factor. 2. Reviewing company ratings in The Dun and Bradstreet Reference Book of American Business. 3. Collecting information on competitors' payment period policies 4. Preparing monthly accounts receivable aging schedule and investigating problem accounts. 5. Calculating the accounts receivable turnover and average collection period