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
A)1 and 3
B)1 and 4
C)2 and 3
D)2 and 4

Question

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​
A)​1 and 3
B)​1 and 4
C)​2 and 3
D)​2 and 4

Quizplus · Accepted Answer

Increased collection expense and increased bad debt expense both argue against extending credit because they represent additional costs and risks associated with credit sales.

Which of the Following Argues Against Extending Credit