Which of the following credit and collections decisions would typically not increase the accounts receivable balance?
A)Extending credit to less creditworthy customers
B)Increasing the discount offered for prompt payment
C)Extending the time allowed for payment of a customer's bill
D)Delaying dunning letters from the credit department
E)All of the above would typically increase the accounts receivable balance.

Question

Quizplus · Accepted Answer

Increasing the discount offered for prompt payment encourages customers to pay their bills earlier, which would decrease, rather than increase, the accounts receivable balance.

Which of the Following Credit and Collections Decisions Would Typically