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RLF Company sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken advantage of the discount by paying within 10 days of the invoice date. The number of customers taking the full 30 days to pay has increased within the last year. Current indications are that less than 60% of the customers are now taking the discount. Bad debts as a percentage of gross credit sales have risen from the 2.5% average in past years to about 4.5% in the current year. The company's Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the following report. Allowance for Doubtful Accounts had a credit balance of $29,500 on June 1,2019. RLF has provided for a monthly bad debt expense accrual during the current fiscal year based on the assumption that 4.5% of gross credit sales will be uncollectible. Total gross credit sales for the 2019-2020 fiscal year amounted to $2,900,000. Write-offs of bad accounts during the year totaled $102,000. In a recessionary environment with tight credit and high interest rates: Identify steps RLF Company might consider to improve the accounts receivable situation. eTextbook and Media Then evaluate each step identified in terms of the risks and costs involved. RLF Company sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken advantage of the discount by paying within 10 days of the invoice date. The number of customers taking the full 30 days to pay has increased within the last year. Current indications are that less than 60% of the customers are now taking the discount. Bad debts as a percentage of gross credit sales have risen from the 2.5% average in past years to about 4.5% in the current year. The company's Finance Committee has requested more information on the collections of accounts receivable. The controller responded to this request with the following report. Allowance for Doubtful Accounts had a credit balance of $29,500 on June 1,2019. RLF has provided for a monthly bad debt expense accrual during the current fiscal year based on the assumption that 4.5% of gross credit sales will be uncollectible. Total gross credit sales for the 2019-2020 fiscal year amounted to $2,900,000. Write-offs of bad accounts during the year totaled $102,000. In a recessionary environment with tight credit and high interest rates: Identify steps RLF Company might consider to improve the accounts receivable situation. eTextbook and Media Then evaluate each step identified in terms of the risks and costs involved