Which of the following statements regarding a firm's accounts receivable management is true?

Select one:

a.Increasing the length of the credit period is most likely to increase the firm's bad debts.

b.Including in credit terms an early payment discount is most likely to increase the firm's investment in accounts receivable.

c.Including in credit terms an early payment discount is most likely to increase the firm's bad debts.

d.Increasing the length of the credit period is most likely to decrease the firm's sales.

e.A relaxation of credit standards is expected to lower the firm's investment in accounts receivable.