A method of reducing overdue accounts and limiting bad debts is setting limits to the credit allowed on______.
A) corporate buyers
B) individual accounts
C) high-cost goods
D) low-cost goods
E) none of the above

Question

Quizplus · Accepted Answer

Setting limits on individual accounts is a common method used to reduce overdue accounts and limit bad debts. By controlling the amount of credit extended to each account, a company can manage its risk exposure and minimize potential losses from unpaid debts.

A Method of Reducing Overdue Accounts and Limiting Bad Debts