In managing a firm's accounts receivable it is possible to increase credit sales per day yet still keep accounts receivable fairly steady if the firm can shorten the length of its collection period.

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By shortening the length of the collection period, the firm can collect payments more quickly and use those funds to extend credit to more customers without significantly increasing the total balance of accounts receivable. This can result in an increase in credit sales per day while still keeping accounts receivable fairly steady.

In Managing a Firm's Accounts Receivable It Is Possible to Increase