Which of the following argues for extending credit? 1. an increase in both sales and inventory turnover 2. an increase in both carrying costs and in sales 3. an increase in bad debt expense and a decrease in collection costs 4. an increase in sales and an increase in collection costs

Which of the following argues against extending credit?

1.	increased collection expense
2.	reduced collection expense
3.	increased bad debt expense
4.	reduced bad debt expense

1.

2 and 3

2.

1 and 3

3.

2 and 4

4.

1 and 4

Credit policy requires establishing

	1.	the minimum level of inventory
	2.	the terms of enforcement
	3.	the optimal level of inventory
	4.	the average collection period