Extending credit to customers will introduce all of the following additional costs except:

Multiple Choice

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.

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.

decreased gross profit from reduced sales.