As an incentive for customers to pay their accounts promptly a business may offer its customers
A) a sales discount.
B) free delivery.
C) a sales allowance.
D) a sales return.

Question

Quizplus · Accepted Answer

Offering a sales discount is a common way to incentivize customers to pay their accounts promptly. This discount can be a percentage off the total amount owed or a fixed dollar amount. By offering this discount, customers are motivated to pay their accounts earlier, which improves the business's cash flow and reduces the risk of bad debts. The other options listed (B, C, and D) are not related to prompt payment and would not be effective as incentives.

As an Incentive for Customers to Pay Their Accounts Promptly