When managing accounts receivable, a good strategy would be to ________.
A) send the accounts to a collection agency to extract payments
B) tighten the credit terms to force the customer to pay on time
C) offer cash discount without losing sales and imposing burden on customer
D) make frequent personal visits to the customer to remind him about his dues

Question

Quizplus · Accepted Answer

Offering a cash discount can encourage customers to pay their dues on time without causing a burden on them. This strategy improves the cash flow for the business and maintains a good relationship with the customer. Sending accounts to a collection agency or making frequent personal visits can damage the customer relationship, while tightening credit terms may lead to lost sales.

When Managing Accounts Receivable, a Good Strategy Would Be to ________