Part III ABC Corporation is a motor accessories trading company who has a huge long overdue outstanding debt from his customers. You are the newly appointed financial controller of ABC Corporation and suggests that interest should be charged to customers whose debts is overdue for 60 days. An interest-bearing note must be issued to these customers and signed by them. You are now at the meeting with the management of ABC Corporation.

Required: Briefly explain four advantages to the management to support your suggestion (Note: no marks will be given if answer is in point form). (4 marks)